I can see why microsoft would want to buy logitech.
one word "search"
search and online advertising is where the rivers of gold are for these giants, and microsoft is desperate to take on google. Most keyboards have search buttons, a microsoft keyboard would link to a msn live search feature. I would say a very large majority of non tech savy users may not reprogram that button to use google instead. Those non tech savy users also tend to be the ones who best convert to $$$'s in a lot of markets. That is no more evident in the way msn search, converts better than google traffic in some areas, although the volume is a lot lower.
I cant comment on the rest of the world, but when I go to a major retailer in Australia, they stock two major brands of keyboards, microsoft and logitech. If microsoft bought logitech, they could dominate the market of people who search by just hitting a button on their keyboard, and block google out of that market. Forget the low margins, on the keyboards, they could sell them at a loss and still make a profit from the search.
I think it would be a wise move on the part of microsoft.
