To Monopolize or Not? That Is The Question
How about this for a purchase? Just about two weeks ago, Microsoft Corp. made an unsolicited offer to buy Yahoo Inc., in a deal valued at $ 44.6 billion, and a price of $ 33 per share (versus Yahoo’s price of $ 40 per share). However, since then, Microsoft’s share price has tumbled 12.8 %, pushing the value of the cash-and-stock offer closer to $ 41 billion. Yahoo spurned the offer saying it “substantially undervalues” the company’s assets. The Web portal business was said to be in talks late last week with News Corp. about a complex deal to push its market value toward $ 50 billion.It is easy to miss the forest for the trees by concentrating on the impressive array of figures thrown at us by the media. I however remain saddened to see the end user robbed of choice when conglomerates like Microsoft seem hell-bent on acquiring anything that’s purchasable. I can understand the Richmond-based company’s frustration at lagging behind search giant, Google in market share, but is gobbling up every little company the right way to go? Is acquiring Yahoo and other companies meant to increase the quality of their products or simply to consolidate the buying company’s market share? Hasn’t Microsoft learnt anything from the anti-trust suit no. United States v. Microsoft, 87 F. Supp. 2d 30 (D.D.C. 2000), filed by the US Department of Justice and 20 US states? The consumer of products must be exposed to as much variety as is possible, for them to fully exercise their choice and go for what they consider best suited to their needs. Capitalist democracy in the marketplace must show that the bourse remains free for all and sundry to participate regardless of their wealth, ideology, or societal standing. The haves must never be allowed to ride roughshod over the have nots.
