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Microsoft wishes to buy (at least part of) Yahoo.

Joao Pedrosa
Friday, May 04, 2007
Oh man, this is exciting!

The shares of Yahoo, Microsoft and Google are to be watched today:
* - currently at +18.06%
* - currently at +0.08%
* - currently at -1.52%

I can't fathom the result of such a merge, can you?
Joao Pedrosa
Friday, May 04, 2007
I can fathom it: an even larger and more confused Microsoft.

The problem is that neither Yahoo or Microsoft has been able to deliver quality in search results and targeted advertising.

I'm not sure why Microsoft would want to buy Yahoo if Panama hasn't yet proved itself.

The only reason Yahoo would agree to be acquired is if it *didn't* think it could actually beat Google.  It's giving up.  The only reason Microsoft would want to acquire Yahoo is if Yahoo *could* help it beat Google.  A bad deal for both sides.  A losing proposition.

Not like I really care, since I don't have any particular fondness toward Yahoo or Microsoft, but it would be good for Google to have real competition.  Competition is good for the consumer.
Moosebumps Send private email
Friday, May 04, 2007
Nicely said!
Joao Pedrosa
Friday, May 04, 2007
In the past, when Oracle was acquiring Peoplesoft, Oracle made about three offers in a few years to get the deal, as the Peoplesoft folks wanted more money than Oracle was willing to offer.

This is the second time that Microsoft offers to by at least a little part of Yahoo, and unless this is to be prolonged due to cheapness on Microsoft's offerings, eventually Microsoft is going to make this deal happen.

I think it's crazy, crazy, mad... As I said, I can't fathom it! But who am I, anyway? :-)
Joao Pedrosa
Friday, May 04, 2007
I'm usually an intense skeptic of acquisition rumors, however this one gives me a gut feeling that it's real, and will close imminently.

I think it's terrible for Microsoft, but it does provide some strategic cover for the failure of the Live! web properties (good old survivorship bias -- they can roll them up into Yahoo and then pretend it was another successful strategy).
Dennis Forbes
Friday, May 04, 2007
There was speculation about this about year ago.  The thing I don't understand is:  What would Microsoft gain by doing this?

You aquire a company to get (1) its customers or (2) its technology.  With something like a web site, #1 isn't much of an issue.  Customer visit whtever web sites they feel like.  There's no customer-loyalty.

So, it must be #2, gaining technology.  What technology would they gain from Yahoo?

- Search Engine?  Already got it.
- Web-based E-Mail?  Already got it.
- Instant messenger?  Already got it.
- Portal?  Already got it.
- Mapping?  Already got it.
- Product Search?  Already got it.

I don't know what MS would get from the deal.  Ok, so Microsoft's web-based offerings aren't necessarily the best or most popular.  But I don't think that Yahoo really beats them.
Myron A. Semack Send private email
Friday, May 04, 2007
Microsoft is majorly interested in online advertising, but Yahoo can't sell them "just that". Hence, Yahoo derides Microsoft when it comes to selling it "just that". Microsoft has to take the whole Yahoo package if it wants "just that", hence this deal in the workings.

The history so far is that Google bought "DoubleClick" for $3.1B, while Yahoo and Microsoft were themselves interested in buying DoubleClick.

Then Yahoo bought another of such company for some hundreds of millions of dollars, not allowing Microsoft to buy it.

As Microsoft wants to challenge Google in online advertising, there is little else for buying to help Microsoft get there fast, hence the interest in taking Yahoo with the "goods and bads" of it, probably ensuring some clout to Microsoft's next 10 years as an "interesting company".

I can't judge it, saying for example that after this deal, Microsoft will be "as dead as ever", or that Yahoo is going downhill as a result as well. It doesn't pay me to say such things in the least. :-)

I just find such a deal very hard to make, due to the sizes and differences of cultures. Hence, I agree with you when you say that it will hardly pay off in an interesting way. To this extent, I doubt such a deal will be completed.
Joao Pedrosa
Friday, May 04, 2007
Sounds like the business side of MS has lost confidence in the tech side being able to become THE major web player. Anything less than domination would not support the amount of revenue that a company the size of MS needs to satisfy the stockmarket.

The business folks are taking it upon themselves to move the company forward. If they succeed they become heros and the leadership of the company permanently shifts to the suits. If they fail well it wasn't their strategy that was flawed but the little folks execution.

Historically when management without subject matter expertise starts leading a company it results in a mess.
Phil C Send private email
Friday, May 04, 2007
I think it's a crappy idea and will result in the crappification (if you'll pardon the word) of the few good things still left at Yahoo -- ie, Flickr,
Friday, May 04, 2007
It make more sense to buy Yahoo than PG's ho(web 2.0 startup)

Friday, May 04, 2007
Considering that yhoo is a *nix shop, this could be interesting.  I predict a major culture clash.
christopher baus Send private email
Friday, May 04, 2007
Christopher, Hotmail ran on BSD for some time after Microsoft purchased it.

I don't think Microsoft have a problem with using the appropriate tools to Get a Job Done. They might well take the opportunity to examine if/why their own tools would not be a good fit and attempt to correct any problems they find, but I'm not sure why you see a clash happening.
Rob Moir Send private email
Friday, May 04, 2007
Joao Pedrosa,

It might not happen the same way. Depending on who's president of the U. S. at the time the merge happens, the DOJ could put a stop to it.
Ben Atkin Send private email
Friday, May 04, 2007
I started it, I finish it:

LOS ANGELES, May 4 (Reuters) - Talks between Microsoft Corp. (MSFT.O: Quote, Profile, Research and Yahoo Inc. (YHOO.O: Quote, Profile, Research are no longer active, the Wall Street Journal reported on Friday, citing people familiar with the situation.

The report comes after two newspaper articles, including the Journal, said the two companies were in talks for Microsoft to buy Yahoo.

Yahoo shares rose nearly 10 percent on the original report, while Microsoft shares fell more than 1 percent.

Talk about speculation! Whoever planted this must have made a few bucks today.
Joao Pedrosa
Friday, May 04, 2007
Nice wrap up here:

"Why Yahoo! Can't Fix Microsoft"

Semel will be speaking to Microsoft's advertisers Wednesday at a conference Gates' company is putting on in Seattle. You can bet he and Bill Gates will have exchanged more than a few words before then.

Maybe folks were overly excited about the Yahoo! CEO going for this talk or something. :-)
Joao Pedrosa
Friday, May 04, 2007
should've sold my yhoo today.. first time i was out of the red in quite a while.

msn is way behind google and yahoo. i can't even remember the last time i did a search on msn. everyone i know is the same way.
SomeGuy Send private email
Saturday, May 05, 2007
"should've sold my yhoo today.. first time i was out of the red in quite a while."

Too late, this rumor was designed to get people out with skins intact. If read carefully, it's not to buy yahoo, but to partner with.

Sunday, May 06, 2007
> There was speculation about this about year ago.  The thing I don't understand is:  What would Microsoft gain by doing this?

The thing I don't understand is people who expect logic and reason from corporate mergers.  ;)

Sunday, May 06, 2007

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