Just about everyone else on the Internet has written on the potential acquisition of Yahoo by Microsoft for $44.6 billion, but I thought that I would weigh in on what I think this might mean for search and Web services.
According to ComScore's search share numbers for December 2007, Google has 58.4 percent of the market share, with Yahoo and Microsoft trailing at 22.9 percent and 9.8 percent, respectively. If Microsoft and Yahoo combine forces and change nothing, that will put them at 32.7 percent to Google's 58.4 percent. While those numbers … Read more
Microsoft's proposed $44.6 billion purchase of Yahoo could subject the software giant to the kind of critical antitrust scrutiny from Washington it hasn't experienced in nearly a decade.
There are plenty of obstacles -- including what Yahoo shareholders and board members think of the deal -- to overcome before the federal government gets involved. But there are already signs that any review will be intense.
"We will need to scrutinize the deal carefully to insure that it will not cause any harm to the competitiveness of what has been a vibrant high tech marketplace, nor negatively … Read more
It has only taken three years for Google to unseat Yahoo in search, become the online ad king, and get so big it prompts Microsoft to try to buy Yahoo.
Microsoft announced on Friday it has made an offer to acquire Yahoo for $44.6 billion. The news comes days after Yahoo said it would lay off 1,000 workers, saw its fourth-quarter profit fall, and gave lukewarm guidance for the current quarter. By comparison, Google on Thursday posted fourth-quarter revenue of $4.8 billion, up more than 50 percent, while profit rose 17 percent.
Google has been able to … Read more
In a move that came as a surprise to no one expect those living under a rock, Microsoft bid $44.6 billion for Yahoo.
According to Steve Ballmer, "Today, the market is increasingly dominated by one player who is consolidating its dominance through acquisition. Together, Microsoft and Yahoo! can offer a credible alternative for consumers, advertisers, and publishers."
And while Ballmer stopped short of mentioning Google by name, this one statement highlights an important element of Microsoft's strategy. As I've mentioned before, Ballmer and company are focused on Google more than any other company and this deal with Yahoo may finally give it the leverage the company needs to capture greater influence online.
But I digress. Today, the real story surrounding the possible Yahoo acquisition has nothing to do with Google at all. Instead, today's announcement surrounds the absolute need for Yahoo to accept this acquisition to save itself.
Of course, the only problem is, nobody knows if it will.… Read more
From rainy New York City--today we talk about how the new Hobbit movies won't suck because Guillermo del Toro will be behind the camera, this weekend's movies, reactions from last night's Lost premiere, and the whole Microsoft and Yahoo! merger thingie. Plus, we'll recall TV shows we miss and the time when MTV wasn't awful.
Listen now: Download today's podcast
It's clear that Yahoo is struggling against Google, and it's clear that Microsoft wants nothing more than to be important in the online services world. But the combination of these two behemoths, neither of whom have been particularly innovative with technology or customer acquisition of late, is the next AOL/Time Warner debacle.
Does anyone think that the merger of AOL and Time Warner was a success? Does the marriage of two companies that have no clear strategies ever make sense?
Microsoft hasn't proven that it can take advantage of this scale of web property and has wasted a huge amount of time and dollars with all the Live.com junk. Yes, MS should move into new markets and look to the future but Yahoo is a massive undertaking with a completely different culture. … Read more
When you look at the cultural differences between Microsoft and Yahoo, you don't need to look much further than a floor plan.
Microsoft has been a company of offices, where workers toil individually at their piece of a collective project. Yahoo, by contrast is a Silicon Valley archetype where workers sit in cubicles and tend to work collaboratively.
The folks in Redmond are known for being hard-charging and competitive, both internally and externally. Yahoo, meanwhile, tends to be more collaborative, sometimes to the point of inefficiency.
Below is the text of the letter that Microsoft sent to Yahoo's board of directors:
January 31, 2008
Board of Directors Yahoo! Inc. 701 First Avenue Sunnyvale, CA 94089 Attention: Roy Bostock, Chairman Attention: Jerry Yang, Chief Executive Officer
Dear Members of the Board:
I am writing on behalf of the Board of Directors of Microsoft to make a proposal for a business combination of Microsoft and Yahoo!. Under our proposal, Microsoft would acquire all of the outstanding shares of Yahoo! common stock for per share consideration of US$31 based on Microsoft's closing share price on January … Read more
Savio Rodrigues asks this question over at InfoWorld with regard to Microsoft shoving it into a deal between it, Renault, and Novell, stating:[W]hy should a customer care about IP assurance? IP indemnification is a vendor issue, just like ensuring environmental rules or workplace safety regulations are being adhered to. It's a disgrace that vendors have made indemnification a customer concern.
I could not agree more. Yet it is the number one legal issue I deal with, and it's not just an open-source thing.… Read more