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Oct 28 2008

Microsoft must quit its ad business and acquire Yahoo!

Sardar Mohkim Khan 

image236 Microsoft must quit its ad business and acquire Yahoo!Many a folks must have predicted one thing or the other for the countless firms in the tech world. But it appears that analysts at Cowen and Company, Kevin Kopelman and Jim Friedland have got some advice for them. According to them, Microsoft should turn away from online advertisement and should otherwise pursue acquiring Yahoo on a much more serious note.

Accordingly, they believe Microsoft’s online ad business would otherwise keep burdening the company’s finances. They  added:

We estimate that the OSB unit will have a 7-8 percent drag on Microsoft’s earnings in FY2009. As the economy slows, we believe pressure will increase on the company to focus on profitable initiatives.

[via Wired]

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