Ballmer surprised by market's reaction to MS-Yahoo deal

If you haven't heard by now, Microsoft and Yahoo have announced a deal that will allow them to team up on advertising and search sales. You can learn more about the deal through the ChoiceValueInnovation.com site.

While Wall Street reacted positively to news of the deal, Yahoo's stock plummeted. As of early Thursday, it was trading at 16 percent, which surprised Microsoft's Steve Ballmer. "That's one that stuns me," he said. According to Ballmer, Yahoo stands to generate about $500 million in operating income and gain a savings of $200 million in terms of capital expenses it will not have to foot once the deal closes.

Ballmer appeared to be conscious of Microsoft's missteps in terms of not entering the search market early enough. He was quoted as saying, "When you don't choose to be in early enough you have a problem. When you choose to stay out of a business that is economic value creation, you won't grow with the market. If you are picking the right things that's a very important call."

For more on this story:
- check out this article at Computerworld

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