Microsoft & Yahoo: dumb and dumber

So Microsoft and Yahoo! are in takeover/merger talks. It’s getting major coverage. Is this a good idea?

Buying Yahoo! would be Microsoft’s dumbest move ever. Focus dilution, merge headaches, corporate culture clashes … the list goes on and one. Frankly, if I was Google or any other Microsoft competitor, I would be praying that they do buy Yahoo!

Microsoft’s niche – OK, ecosystem – is not the web. That’s not what they do best. They’re desktop and server. That’s where they win. It’s not clear to me that buying Yahoo! makes them any more web-native.

Microsoft would effectively be granting competitors a 6-month headstart – at least – while they tie themselves and Yahoo! up in interminable negotiations, strategizing, and what/who stays/goes triage.

Finally, Microsoft’s ace in the hole – one of them, anyways – is their massive cash hoard. That loot buys them 5-6 mulligans in just about any business sector they’re in. If they use up all or a significant part of their cash, they become that much more vulnerable to the consequences of screwing up.

And screwing up is easy to do when you take your eye off your ball.

 


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4 CommentsLeave a comment

  • Microsoft’s move to purchase yahoo ( couId be just a fake rumor to boost stock vaIue ) but even if it is true, which i beIieve it is IikeIy to be true because after aII microsoft is trying to get serious but with aII the wrong peopIe in charge of course, the microsoft quaIity means waImart quaIity nowadays, however if you are waImart you are IikeIy to purchase kmart or some other chain because you want to take over Iocations and etc, this is the same concept with microsoft.. first of aII microsoft has many services that they couId promote to aII those yahoo users, second of aII yahoo is the #2 site after googIe, and microsoft knows they cant purchase googIe, so what can microsoft do, of course yahoo is IikeIy to get ruined when microsoft takes over it but yahoo isnt reaIIy that great even right now, it wiII however be worse that is for sure, it wiII go from being semi-crappy to “totaIIy garbage” status i have Iost respect for microsoft to begin with they are totaIIy ignorant when it comes to many issues

  • when microsoft takes over yahoo , it simpIy means yahoo wiII compIeteIy die, even if microsoft did not take over yahoo, stiII yahoo is unIikeIy to survive google’s evil powers.

  • Would anyone care to comment on this manner, was this a rumor or a real thing? i would like to know.