More bang for your bucks - literally.

According to Yahoo, the search giant is ready for a return from the wilderness. The new ad system will not be available until later this summer and then only to a limited number of advertisers. The initial target will be newpaper publishers keen to recoup some of the losses they have experienced to online media.

‘We’re watching you!’

Apparently, the new system will use bahavioural tracking which will generate ads based on a consumers traffic patterns (pretty much the same way that Google and Microsoft currently work). This has raised some concerns around user privacy but Yahoo are confident that consumers will appreciate ads tailored to their own preferences.

But…

…what about the Microsoft offer? This may well prove to be a huge stumbling block for Yahoo. The Redmond giant has slapped a huge $41b offer on the table. Yahoo argues that this does not place a high enough value on the company (really?). In addition, Microsoft have placed a deadline on this offer. If a ‘yes’ decision is not reached by 26th April Microsoft has indicated it will launch a hostile takeover at a lower price (don’t you just love capitalism?).

What now?

Yahoo now needs to convince its investors that fending off Microsoft is a wise move. The company has produced projected revenue for 2009 of about $7.1b, a significant jump from last year. However, analysts are suggesting a more ‘modest’ figure of approximately $6.4b. Given that Yahoo touted ‘Panama’ as an end to all their financial woes last year (it didn’t) investors may well be inclined to side with Microsoft.

Popularity: 3% [?]