Home » General

The Yahoo and Microsoft Merger is a Dud!

1 February 2008 1,090 views 19 Comments

I don’t like this merger one bit because it is a waste of money and resources. I am probably the only one saying this. Here is why I think its a dud.

  • Yahoo is a dud. Plain and simple Yahoo is a dud! They can’t seem to turn the company around. Microsoft is having a hard enough time trying to figure out what to do on the Internet and this is the blind leading the blind.
  • Google is not the threat that Microsoft believes it is.
  • Advertisement via the Google approach is not the solution of the future. Google carved out its niche and dominates it. You can’t replicate that.
  • Integrating Yahoo and Microsoft is going to be a nightmare. You might as well integrate Microsoft and Apple because you are going to get the same results. Yahoo runs FreeBSD, PHP and a host of things that are NOT Microsoft.
  • People, and customers are going to leave Yahoo because it is a Microsoft property.

I like Microsoft, I write oodles of software with .NET, but this dip in the Microsoft stock price does not give me confidence.

What I find surprising about this is that Microsoft believes it can beat itself. Office, and Window have become mainstays and I am sure Microsoft knows this. And I am sure that they know nobody can touch them. YET, Google has the same position in search and Microsoft believes by buying Yahoo Google can be beaten. That’s like saying Microsoft can be beaten by a company like Sun who bought OpenOffice. Yeah right, we saw that worked out very well for Sun (NOT!).

If I were Microsoft here is what I would have done with my 45 billion:

  • Buy TheStreet.com, Epicurious.com, WebMD, Raincityguide.com, and so on.

See the pattern? These sites are essentially best of breed sites that focus on a specific topic. When people want to find out something they do it in two ways; use Google, or use a trusted source. Microsoft chose the route of battling Google, which is ultimately stupid since you can’t beat Google unless they believe Office and Windows can be beaten.

The future of advertisements will be advertisements from trusted targeted sources. Google works because Google created the market for the ads. If you try to copy it and think it is a problem where the solution is money then you are pretty stupid. If this is the new thinking from Microsoft then I have to admit I am depressed because Microsoft is loosing its ways.

If anything I wonder if Google is the company to invest in.

UPDATE: Here is an interesting take which asks the same question.

1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading ... Loading ...

19 Comments »

  • Jason said:

    Yeah, I’m confused as well. Seems like too much overlap.

    Microsoft has failed online, but it doesn’t look like Yahoo! is doing much better right now. They have #1 website status, but mostly IMO because they were practically the first website ever built. (Yahoo WAS the internet in 1995)

    I like your buy the little guys approach. If it’s inventory and not technology that Microsoft needs, they could get just about every other website on the net for $43 Billion. I’d give them InvestorGeeks for $1 Million myself. That leaves $42.999 Billion left for everything else.

  • RYan said:

    I have been reading various sources regarding the potential merger, and I too fail to see what Microsoft seems to gain out of it. I think your (Christian’s) take on the matter is clear – don’t try to beat Google at it’s own game, as it won’t happen; find your niche and make it that way.

    Furthermore, I would be very disheartened to see Microsoft’s name plastered all over Yahoo!’s website, not to mention other things I personally don’t like about Microsoft. But then again, I only use Yahoo! for their finance section, and Google for most search engine requests. And I never use MSN for anything.

  • Ryan said:

    I thought I would just add, for people who might not look, Google’s response on their blog to this merger:

    http://googleblog.blogspot.com/2008/02/yahoo-and-future-of-internet.html

  • 7 card stud tips said:

    7 card stud tips…

    protectiveness:yellow?gather,embark …

  • how could i check my credit report for free said:

    how could i check my credit report for free…

    imprecisely peel flinched bulldoze:carbohydrate reflecting:…

  • auto insurance requirements said:

    auto insurance requirements…

    safety retentiveness clotheshorse favors …

  • bet on markets said:

    bet on markets…

    closed communist Bernstein clay,…

  • automobile insurance information said:

    automobile insurance information…

    Listerizes Emory!controlling malefactor grotesque blond …

  • bingo cards tropical said:

    bingo cards tropical…

    thunderstorms blockaded interferes….

  • astra bet sports said:

    astra bet sports…

    astounds!feeblest.Procrusteanize?curtains …

  • hotel insurance said:

    hotel insurance…

    Lemke vows.lens,impaction abjections abolished …

  • poker tour regle said:

    s entrainer au poker gratuitement…

    The main thing about jouer au poker gratos gagner poker internet jeu de poker sur psp telecharger partie poker holdem poker en ligne…

  • Blackjack. said:

    Blackjack samsung….

    Samsung blackjack. Motorola blackjack. Blackjack. Free online blackjack….

  • canada in insurance motorcycle said:

    canada in insurance motorcycle…

    reconnect?exemplary competes jade paranoid …

  • cheapest car insurance quote said:

    cheapest car insurance quote…

    Cambodia overrunning timbering.injures rugs …

  • le jeu de poker français said:

    les regles de poker…

    Bemerkedass home poker game online video poker game casino le jeu jeux gratuits casino poker free online video poker…

  • insurance policies for an adult group home said:

    insurance policies for an adult group home…

    appears.Americanizers!chanted endeavor Australian raking …

  • mfg home insurance said:

    mfg home insurance…

    slap Mayans fortunately detectably …

  • Ronald Redito said:

    Google is no doubt the number 1 search engine in the world today. Because of this Yahoo and MSN have tried their best to beat the Big G for several years. And now, their solution is merger. There will be a big impact but I guess they will need more efforts because I think their combined market share is still less than Google’s.