Microsoft Corporation (MSFT), Google Inc (GOOG): Are Blockbuster Acquisitions Worth It for these Tech Companies?

Page 2 of 2

Bottom line

Are large scale acquisitions worth the lofty price? Yes. Already we can see that competitors are worried, as Facebook’s stock slipped by 2.1% following the news of Yahoo!’s purchase. The market knows that Tumblr will redirect millions of young eyeballs to Yahoo! products. In turn, Yahoo! will command more market share and earn greater revenues.

By landing Tumblr, Yahoo! has proved it is willing to pay for more users. At a time when blockbuster deals are becoming more frequent, Yahoo! is keeping up with the pack. If history is any indicator, Yahoo! has a bright future.

This article was written by Randy Holcombe and edited by Chris Marasco.  Chris Marasco is Head Editor of ADifferentAngle. Neither has a position in any stocks mentioned. The Motley Fool recommends Facebook and Google. The Motley Fool owns shares of Facebook, Google, and Microsoft.

The article Are Blockbuster Acquisitions Worth It for these Tech Companies? originally appeared on Fool.com and is written by Marie Palumbo.

Marie is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2