
Yahoo cannot survive on its own. Microsoft needs a search
technology boost. The companies have been talking for over a year. Last February,
the deal could have been $60 billion vs. $41 billion on Friday.
Yang is calling in the big guns by reaching
out to Google to see if they can "work together." Google could try to cloud
this deal by crying anti-trust foul. Ballmer today in their analyst call said
that Microsoft acquiring Yahoo would do more for competition than some
arrangement with Google & Yahoo. This makes sense for Microsoft and I would
expect this to go through this year. Microsoft could use this as a platform for
MS Live, think getting more business eyeballs using Microsoft software as a
service technology. Yahoo has some good relationships from a content provider
to major carriers and is a top destination site - much more than MSN.
It would be important to get the Yahoo
software team on board because many new graduates choose to work for a Google
or eBay rather than a mainline software company such as Microsoft. This could
add some pizzazz to Microsoft's offerings. The only problem I see is that
Microsoft will most likely drop the brand altogether within 2 years.
Leave a comment