Microsoft is on shopping spree again. This time they are acquiring Farecast, and this news has been confirmed by Farecast’s blog. Farecast, is a Web 2.0 travel portal that enabled their users to predict whether prices of flights or hotels will go up and down, so users are much aware of when to buy through the output of predicted data.

From this buy, Microsoft is signaling its intention to build an all-round Internet capabilities as part of a larger Internet empire. Features available in Farecast has also been built into Microsoft’s existing MSN Travel, at this moment not sure Microsoft will merge these two into one, as either one of them did not bridge the gap of the other.

Although the sum of acquisition has not been disclosed by either party of them, but the price tag might go up to $115 million, as reported by Seattle P-I.

via [search engine land]

Much has been written about Microsoft’s unsolicited offer for Yahoo!, but it’s seemed that Microsoft believed the value of Yahoo! has been dropped since the offer was first made in January. What will be Microsoft’s next step? On April 5, Microsoft sent a letter to Yahoo! board, setting a three-week deadline, i.e. April 26 for an agreement to be made. The full text is listed as below. From now on we know it is a make or break for Microsoft.

April 5, 2008
Board of Directors
Yahoo! Inc.
701 First Avenue
Sunnyvale, CA 94089

Dear Members of the Board:

It has now been more than two months since we made our proposal to acquire Yahoo! at a 62% premium to its closing price on January 31, 2008, the day prior to our announcement. Our goal in making such a generous offer was to create the basis for a speedy and ultimately friendly transaction. Despite this, the pace of the last two months has been anything but speedy.

While there has been some limited interaction between management of our two companies, there has been no meaningful negotiation to conclude an agreement. We understand that you have been meeting to consider and assess your alternatives, including alternative transactions with others in the industry, but we’ve seen no indication that you have authorized Yahoo! management to negotiate with Microsoft. This is despite the fact that our proposal is the only alternative put forward that offers your shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company, and enhances choice for content creators, advertisers, and consumers.

During these two months of inactivity, the Internet has continued to march on, while the public equity markets and overall economic conditions have weakened considerably, both in general and for other Internet-focused companies in particular. At the same time, public indicators suggest that Yahoo!’s search and page view shares have declined. Finally, you have adopted new plans at the company that have made any change of control more costly.

By any fair measure, the large premium we offered in January is even more significant today. We believe that the majority of your shareholders share this assessment, even after reviewing your public disclosures relating to your future prospects.

Given these developments, we believe now is the time for our respective companies to authorize teams to sit down and negotiate a definitive agreement on a combination of our companies that will deliver superior value to our respective shareholders, creating a more efficient and competitive company that will provide greater value and service to our customers. If we have not concluded an agreement within the next three weeks, we will be compelled to take our case directly to your shareholders, including the initiation of a proxy contest to elect an alternative slate of directors for the Yahoo! board. The substantial premium reflected in our initial proposal anticipated a friendly transaction with you. If we are forced to take an offer directly to your shareholders, that action will have an undesirable impact on the value of your company from our perspective which will be reflected in the terms of our proposal.

It is unfortunate that by choosing not to enter into substantive negotiations with us, you have failed to give due consideration to a transaction that has tremendous benefits for Yahoo!’s shareholders and employees. We think it is critically important not to let this window of opportunity pass.

Sincerely,

Steven A. Ballmer
Chief Executive Office
Microsoft Corp.

Microsoft will have its own video platform soon, that name after Microsoft Videos. As showed in Microsoft Videos’ landing page, they already entered the preview testing phase, and it shouldn’t take long before it’s fully launched in next month. What users can expect from this site? At first, the content are initially focused on the U.S. territory, but most important for the users are now they’ll have the chance to feel the greatness of Silverlight, another Microsoft’s technology released in last April.

Could Silverlight become the killer application in the rich media platforms? At least Microsoft think so at the time when they launched Tafiti. Microsoft Videos will be another example where developers can use Silverlight to build a decent Web application. So, Adobe, you watch out.

Microsoft Japan is seemed to be heavily promoting Windows Vista series of products in Japan. Two weeks ago, they launched Windows Vista Ultimate SP1, and now it’s the Windows Vista Home Premium upgrade edition. This upgrade edition will only offer 2,500 set, which will be included at no additional charge for existing Windows XP or Windows 2000 Professional to upgrade to Windows Vista Home Premium. It has a special Sakura CD box, for those who purchase this upgrade edition will also entitle to a one-year Windows Live OneCare and a special designed Windows Vista user manual.

In a press release, Microsoft has announced the acquisition of Rapt, a company that specialize in providing advertising yield management solutions for digital media publishers. The acquisition of Rapt will put the existing Rapt’s technology offerings and services such as Advisory Services and Information Services into a key components of the Atlas Publisher Suite, part of Microsoft’s Advertiser and Publisher Solutions Group.

To date, we see the recent Microsoft’s successful acquisition targets are all related to the online advertising sector. In February, Microsoft acquired YaData, as well in last July, Microsoft also acquired AdECN. By acquiring all the online advertising players on the Web, will it make Microsoft a long-term contender in this market, particularly in viewed of Microsoft served as an underdog in this industry. In technology settings, the next Microsoft product for publishers has met the need for what they called yield management solutions, when they included all the built-in features such as workflow tools, ad package and delivery, turnkey distribution, content partnerships, and yield management and optimization. However, how strong will these offerings to the publishers when compare to others in the field is yet to know. As Microsoft being a client for Rapt, they must be very satisfied with Rapt’s technology.