Bog Roll ::

It's Not Magic, It's Work!

03 Feb 2008

Microsoft Wants Yahoo!

Microsoft launched their second take-over bid for Yahoo! this week. If you ask me Microsoft might as well launch a take-over bid for Ford so that they can better complete with Honda for all the sense it makes...

Microsoft have a web presence, it's dismal, loses money hand over fist, and what they have the bought in from outside. So far they have just been pouring money down the drain, huge sums of money and it's got them no where.

Yahoo! were born on the web, understand the web and have the web coursing through their veins. They may not be doing all that well against Google, but they are doing a lot better than Microsoft.

If I were a Yahoo! shareholder, selling to Microsoft is a perfect exit strategy: take the money and run, letting MS-Yahoo sink without a trace... If I were a Yahoo employee I'd be sending my CV to Google now.

If I were a Microsoft shareholder, I'd want that vision-less chair thrower out of the door now. Microsoft as the also ran (indeed they are so insignificant they hardly appear on the radar) and frankly with no where to go should be the one looking for the exit strategy, not buying a stumbling number two player.

Microsoft and Yahoo! have utterly different technologies, histories, cultures and they won't mix. Everyone with any idea knows this. The only way to make a combined MS-Yahoo! to work would be for MS to swallow their pride and switch platform to Yahoo's LAMP stack, switching the other way would kill any value that Yahoo have left.

Microsoft should give their web properties to Yahoo! take a equity stake and stand well back. That way Yahoo! can stick with their non-Microsoft platform and migrate Microsoft's customer base onto Yahoo's platform. By standing well back Microsoft won't be forced to admit that their technology stack can't support a large system like Google or Yahoo. With Microsoft's added customer base, some cash and stability Yahoo may be able to turn themselves around, netting Microsoft a profit on a relatively small stake - 10% of something is a lot better than 100% of nothing.