So it has finally happened. Microsoft and Yahoo have merged in an attempt to provide Google with competition.
I had been analyzing the merger for both Microsoft and Yahoo before they had reached a consensus in Jerry Yang’s days as CEO of Yahoo.
The only thing that seemed to make sense, from a classic economic point of view, was the large increase in the ‘economies of scale‘ for Microsoft and Yahoo. The merger would allow both companies to enjoy efficiency gains that result due to increase in size.
This article was published in the New York Times after the merger had finalized and provided evidence that my sense was correct.
Enjoy !
