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Microsoft Looks To Refuel Talks With Yahoo

froggero1 writes "The New York Post is reporting that Microsoft wants to rekindle the takeover talks with Yahoo. According to the article, Yahoo! has repeatability turned away their offers, but Microsoft hopes that a lucrative 50 billion dollar offer will bring them back to the table. This move would increase Microsoft's web search market share to roughly 38%."

17 of 188 comments (clear)

  1. Of couse by otacon · · Score: 5, Insightful

    Because if you try at something several times and fail every time, just buy a successful one.

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    1. Re:Of couse by vought · · Score: 5, Insightful

      Microhoo.

      Yahsoft.

      I fail to see how this creates anything but more headaches and "me-too" problems for Microsoft - but it does confirm for me (if not Netcraft!) that Microsoft has a serious problem when it comes to creating new ideas and following through on them.

      I used to joke about Microsoft buying all of it's new ideas - but this is a rather bigger problem. Once they buy Yahoo, do they transition it into a new form of MSN, thereby killing everything that was cool about Yahoo? Or do they un-MSN the current Microsoft web properties?

      The problem Microsoft has is that when it comes to finding information and using the web to share information, Google has the most useful tools for the largest number of people. Buying a languishing Yahoo won't magically make Microsoft popular.

      Biggest doesn't win here - subjectively best does.

  2. Indeed... by locokamil · · Score: 4, Funny

    ... I repeatability wonder why the grammar is so poor in Slashdot articles.

  3. Re:Too easy? by otacon · · Score: 5, Funny

    You would hope Google would have something to say. If Google doesn't quit counting their money and building Ferris wheels and bumper cars in employee break rooms someone is going to catch up and take them down a peg or two.

    --
    In a world of acronyms, the words are the real victims.
  4. Increase share? by djones101 · · Score: 5, Insightful

    You assume that people will stick with Yahoo! after M$ takes it over.

  5. Not just grammar by Anonymous Coward · · Score: 4, Informative

    Facts are also in question. Where does it say MS is offering $50 billion?

    From the FA:

    The new approach follows an offer Microsoft made to acquire Yahoo! a few months ago, sources said. But Yahoo! spurned the advances of the Redmond, Wash.-based software giant. Wall Street sources put a roughly $50 billion price tag on Yahoo!.

  6. Too much? by kiracatgirl · · Score: 5, Insightful

    Maybe if Microsoft didn't keep trying to dominate every market they see someone else being successful at, they'd be able to do better in the ones that they've been successful at. Such as, I don't know, operating systems? Everything I've heard about Vista is bad; if MS had been focusing on making Vista better (and maybe on time) instead of trying to match everyone else it wouldn't have been such a, well, failure. The attempts to get into said other markets haven't really been a success, either. (Zune, anyone?)

    Microsoft needs to let Yahoo alone and realize that it's not possible to do everything.

  7. That would be great... by agentultra · · Score: 4, Insightful

    ... cause then Microsloth would be one step closer to wiping out web standards and all the good work Yahoo! has put into the web development community.

    Buy your way to the top!

    No greater an illusion.

    Like buying your search ranking or myspace friends.

  8. Re:Bang goes MSFT's cash reserve by Steepe · · Score: 4, Insightful

    Leaving ANY market entirely to ANYONE is a bad thing. Google notwithstanding.

    I use google, they are my homepage, I pretty much do ALL of my searches on google, but do I want them to destroy Yahoo and be the only major player in the market? NOPE!

    "Don't be evil" goes out the window quickly when you have all the power.

    If there is no one to compete against, then there is no reason for innovation. They spend that energy they would have spent on search would move elsewhere to try to become Google$

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  9. Re:If Yahoo! is 38% of the market by 99BottlesOfBeerInMyF · · Score: 4, Informative

    if 38% = $50B

    This is an incorrect assumption in several ways. First Yahoo has 28% of Web searching, not 38%. The 38% number was for Yahoo and MS's combined share. The other way it is incorrect is the assumption that all Yahoo or Google or MS does is search, which is of course not true. The value of $50B was for the company, not for their Web search service.

  10. this should not be allowed by Anonymous Coward · · Score: 5, Insightful

    This is the company that used all sorts of illegal techniques to crush competition in the desktop OS, browser, and media player markets. Microsoft's CEO likes to use the phrase "integrated innovation" to tout the advantages of their offerings vis a vis the competition. In other words, they don't play well with anyone else.

    Now they want to use a portion of their accumulated monopoly profits to acquire a company that has huge on-line communities and brand names. Anyone who's paid attention over the last 15-20 years knows what will come next: "best" access will soon be restricted to those who use Microsoft's operating system, browser, media players, and development tools. Eventually those using other browsers and operating systems may be shut out altogether. The average person buys Windows preinstalled on their Dell or Gateway won't care, but they don't see how innovation is being shut down the same way innovation in the PC desktop software market fell dramatically after Microsoft established its hegemony with Windows 95.

    Microsoft has all the money and resources in the world. Let's see them build their own online communities, really innovate instead of talking about innovation.

  11. Heh by aftk2 · · Score: 4, Insightful

    This seems like a profoundly bad idea for all concerned. I like Yahoo. I don't use them for search, but they seem, at least marginally, to "get it": they've purchased a number of promising web startups like Flickr and Upcoming, and seem to mostly let them do their own thing (contrasted with that other web company). They allow their developers to be pretty transparent. They've created the Yahoo User Interface Library (which is quite helpful), etc...

    If Microsoft were running the show, I'm worried that would change. Plus, I think there would be other problems. For Microsoft, what would be the easiest and quickest way for them to completely demoralize the employees who work in their Internet divisions? Buy Yahoo. For Yahoo, what would be the easiest and quickest way to confuse and worry their employees? Sell to Microsoft (although many might not be that confused while they're swimming in their huge piles of money.)

    Finally, I'm concerned about Yahoo's services, were Microsoft to purchase them. It sounds like Microsoft has a large number of middle managers and policy makers who like nothing more than to assert their authority with arbitrary decisions. Yahoo seems to value a fair amount of development and language agnosticism (with sites written in PHP, custom languages, etc...) What happens to these sites when Microsoft comes in? "I'm sorry - we're rebuilding that in .NET now."

    I don't know - my responses aren't typically those of the knee-jerk Slashdot mentality, but this makes me even me wince.

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  12. unix/windows by IGnatius+T+Foobar · · Score: 4, Insightful

    A friend who used to work for Prodigy once told me that they had a peek at the MSN infrastructure and they discovered that in the mega-portal space, Windows requires twice as much hardware per unit of load as Unix systems. Yahoo is of course built around Unix. Are they really going to try to move that whole infrastructure over? Look at how long it took them to convert Hotmail.

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  13. Which will ruin it and waste the first 50 billion. by twitter · · Score: 5, Insightful

    Wonder how much additional it'll cost to convert Yahoo's BSD servers to Windows. Remember how long (and how many failed attempts) there were to convert HotMail from Solaris?

    If they do that, their share will drop from 38% to whatever they have now. Just look at what they have done to Amazon's search - my wife says it's unusable and quit going there. If they convert Yahoo over to their stuff like they did Yahoo, there will be no difference between Yahoo and their own search and their share will fall back to what it is today and then further. You would think that Google eating Hotmail's lunch would have taught them a lesson. The data they get would also soon lose it's value if they can't figure out how to use it.

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  14. Re:holy crap by cyclopropene · · Score: 4, Informative

    Market cap for YHOO is 44.99 billion, so $50b is in line, 10% or so premium. That's the market cap after news of the potential takeover made it out and the share price rose ~18%. The market cap yesterday was ~38 billion.
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  15. Previous Yahoo merger talks by frank249 · · Score: 5, Funny

    This reminds me of when Netscape and Yahoo were in talks to merge. They were going to move the headquarters to Israel and call the new company Net'n'Yahoo.

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  16. Re:What do you think? by dedazo · · Score: 4, Insightful
    Holy crap, who modded this up for the love of $DEITY.

    It's so funny how Microsoft's success must be measured as an absolute when you are so trying so desperately to re-arrange reality to make them look bad. How many Microsoft products have failed, twitter? I mean, really failed? What, "Bob" and Zune? Out of thousands of them? Out of uncounted billions of dollars in revenue over the past 30 years, "Bob" and "Clippy" are your best examples of why "M$" is about to die and go away?

    Seriously?

    Microsoft doesn't need to dethrone Google with MSN and outsell the PS2. They don't. I'm sure they'd feel better if they did, but they quite simply don't. Their success doesn't need to be absolute. Other companies usually need to, but MS doesn't.

    Consider Google. They're a two-trick pony. Their painfully inflated stock will plummet with first inkling of a problem with the online ad market (not that I would want that to happen, I love Google. But that's not the point). The same event barely makes Microsoft blink. One hiccup in iPod sales and it's pain time for Apple. Microsoft can afford to get it wrong four times with the Zune.

    Microsoft doesn't have to dominate markets completely to be successful in them. It's funny that people like you have to point out "M$" does not have absolute domination of a market to prove they have "failed". Would you rather all of those markets were in the same state as the PC desktop today? Holy shit, I'm a Microsoft fanboy but I sure as hell wouldn't want that to happen. Microsoft needs all the competition it can get.

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