Comments on: Thoughts on Microsoft and Yahoo

By: John

John — Sat, 02 Feb 2008 02:57:29 +0000

Having been through both large and small tech company mergers, I can honestly say that if the merger happens it’s a short term win for current Yahoo shareholders but otherwise will be a complete mess that in the end will accomplish only one thing: the removal of a potiential competitor of Microsoft’s in the online space. The merger offer is a sign of desperation and weakness by Microsoft and (if accepted) by Yahoo.

By: daveadams

daveadams — Fri, 01 Feb 2008 22:57:54 +0000

I'm not sure what Microsoft is going for. As noted, integrating the properties will be a nightmare if it ever happens. But clearly Microsoft feels this is desperately needed. They are going to be spending every last cent of their legendary cash reserve on this deal. I'll wager that this is a good candidate for the "beginning of the end" moment for Microsoft as a major force in the computing industry when the history is written in a dozen years or so.

By: Jackson Fox

Jackson Fox — Fri, 01 Feb 2008 21:13:42 +0000

It makes sense if all you care about is building the #2 online ad marketplace. Otherwise, it seems a bit nuts. As you mentioned, their tech cultures are diametrically opposed, and their properties compete rather than complement each other.

I'm curious what would happen to Zimbra. We use it at Lulu, and I'd hate to see it get lost in the shuffle.

By: Pat Berry

Pat Berry — Fri, 01 Feb 2008 18:55:16 +0000

There is no done deal.

No details of said deal are out.

It will be a long time before 1 & 2, hence a long time before I would need to make plans to deal with various Yahoo accounts (mainly Flickr).