Google Responds To Microsoft’s Bid Of $44.6 Billion For Yahoo!

While Microsoft is hoping to obtain the search giant, Yahoo’s rival Google, has been working very hard to stop the deal.

Death to Yahoo! Will the bid from Microsoft cause Yahoo to die off. That’s what many are thinking, since software giant Microsoft has made an offer to the Sunnyvale, California company. Will this mean more control for Microsoft who also owns its own Internet network, MSN?

According to reports, Microsoft Corp stated on Monday it may borrow money for the first time in its history to fund a portion of its $44.6 billion unsolicited offer for Yahoo Inc after making the offer to the popular search engine Yahoo on Friday. Microsoft also stated that it expects Yahoo’s board to agree very quickly to the deal they offered, but Yahoo has already stated over the weekend that it expects to take “a bit of time” to review all its strategic options including staying independent.

While Microsoft is hoping to obtain the search giant, Yahoo’s rival Google, has been working very hard to stop the deal. Chief executive, Eric E. Schmidt, went to the length of placing a call to Yahoo’s chief, Jerry Yang, offering to help the company in any form to rid off Microsoft in hopes to possibly form a partnership between the two companies.

At this time there seems to be no other companies interested in the bidding which includes News Corporation, Time Warner, AT&T and Comcast due to fear of starting a bidding war.

“Could Microsoft now attempt to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC?” asked David Drummond, Google’s senior vice president and chief legal officer, writing on the company’s blog.

Will this result to more antitrust laws broken by Microsoft who made its MSN search engine the default in the most recent version of its Web browser on consumers computers which later was modified so that the search engine could easily be changed to Google or Yahoo after Google complained to the Justice Department and the European Commission.

How will Yahoo services be affected? Would MSN’s mail system Hotmail some how merge with Yahoo mail? Should advertisers be worried about price changes? What about stock holders and investors?

These are just a few questions that come to mind about the deal.