Yahoo Deal Is Big, but Is It the Next Big Thing?

mattsgotredhair brings us a NYTimes article discussing how Microsoft's bid for Yahoo contrasts against one of the core philosophies of Silicon Valley: looking forward. From the Times: "Microsoft may see Yahoo as its last best chance to catch up. But for all its size and ambition, the bid has not been greeted with enthusiasm. That may be because Silicon Valley favors bottom-up innovation instead of growth by acquisition. The region's investment money and brain power are tuned to start-ups that can anticipate the next big thing rather than chase the last one. 'This is the very nature of the Valley,' said Jim Breyer of the venture capital firm Accel Partners. 'After very strong growth, businesses by definition start to slow as competition increases and young creative start-ups begin to attack the incumbents.'"

Comments

Re:Other reasons for not being warm to the recepti

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You just sang and danced and your way to cover, and it doesn't work. $16 billion reinvested would not be called a net profit, it would be part of the cost between gross and net. You are still talking $16 billion just flat out gone, missing, evaporated! And this is the company offering to buy another one for $44.6 billion? You tell me, how does this add up?

Microsoft is suffering, they are failing, and if I were you, I'd flee before the whole company implodes spectacularly. I saw a similar situation a few years back with a company my grandfather had a lot of his retirement in, some small firm called Enron.