Microsoft Will Win Yahoo

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Microsoft bid $44 Billion for Yahoo this morning. Although this seems like a large premium, Yahoo shareholders should welcome this offer. The much hyped Panama ad platform that Yahoo rolled out last year to counter Google’s aggressive capture of search ad market share, has not performed well. Microsoft has a far superior suite of interactive ad technologies that extend from the PC to the TV to Mobile. What Microsoft does not have in MSN is traffic, which Yahoo still maintains. Yahoo’s institutional shareholders are on the phone to Jerry Yang this morning telling him to make a deal. This could even be a plus for Yahoo’s corporate partners like AT&T that are also in business with Microsoft for TV and mobile ad software. Finally, Jerry Yang’s notion of adopting the Facebook strategy of an open application layer, could be enhanced because Microsoft is already a shareholder and ad software supplier to Facebook.

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0 Responses to Microsoft Will Win Yahoo

  1. Terry McCall says:

    I’m no expert, but as a user of yahoo services (del.icio.us, flickr, pipes, and sometimes mail) I really don’t want to see this happening. While I do believe that The Google needs a worthy competitor, I do not want it to be Microsoft.

    I really think yahoo is one of the few companies that really understands web technologies AND is in a position of power to change things. Pipes is an excellent example of what the future of the internet may bring.

    Microsoft on the other hand, still doesn’t seem to have the forward-thinking mindset needed to push innovation in our newest form of cultural expression. Though technologies such as Sea Dragon show promise, the company’s “me against the world” stance when it comes web standards is troubling as Microsoft’s ,latest IE 8 antics display. While it is true that flickr, del.icio.us & upcoming.org are not originally yahoo technologies, they have grown a lot since their acquisition. I’m scared that if yahoo does accept, then the innovation we’ve seen will slow down to Microsoft’s pace.

    As always, what might be good for the shareholders, might not be good for the rest of us.

  2. M W Block says:

    The power of owning both Hot Mail and Yahoo Mail along with the traffic the sites will generate in eyeballs makes huge sense.
    Google and AOL can use the competition. Microsoft ‘s timing gives them a great price for Yahoo. This looks a win-win for all parties.

  3. Jon Taplin says:

    Terry-I think Microsoft is beginning to moderate its “my way or the highway” style. Google is the gorilla in the search space. Godd competitors will help keep innovation moving and everyone honest.

  4. Terry McCall says:

    “Google is the gorilla”

    Most definitely. I fear for the year 2014 and am really uncomfortable with the way google has its tentacles in just about every aspect of my (and millions of others’) online life (gmail, reader, and the big one, search). But there is no other way… at least until the latest news.

    Rumor has it that yahoo is going to decline the bid though. Some employees talked about wanting a counter-bid, but I can’t think of anyone else with the ability (or bluntness) to do it.

    Ah… for me its like having to choose between a dictator and an overlord. “Do no evil.” (emphasis on quotes) or FUD? Heh.

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