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Tellme Founder Tells Yahoo Not to Worry Over Microsoft Takeover

Tellme founder and previous Yahoo co-founder, Mike McCue hasn't spoken to past-partner Jerry Yang since the Microsoft takeover bid for Yahoo, but he wanted to let his friend know that being acquired by Microsoft isn't such a terrible proposition. "After being assured that Tellme would be able to retain its Silicon Valley office, identity and quirky culture, McCue negotiated an $800 million sale to Microsoft and agreed to stay on as general manager. It's a decision that he says he doesn't regret 10 months into the marriage. 'We are pretty much doing everything we were doing before - just a lot more of it,' said McCue, 40. Because of the vast differences in size, the Tellme deal obviously isn't an apples-to-apples comparison to Microsoft's proposed $40 billion acquisition of Yahoo, which contends it's worth even more money despite a two-year earnings slump."

32 of 117 comments (clear)

  1. Given Yahoo's assistance in Totalitarian China... by sethstorm · · Score: 2, Insightful

    ...it'd be employees of Microsoft in that part of the world that need fear this takeover. Of course, when you let Wall Street rule the world, human rights gets thrown out of the window and into the next county.

    --
    Twitter supports and protects racists - by smearing their critics with the "Hate Speech" label.
  2. Who wouldnt be? by miffo.swe · · Score: 5, Insightful

    Getting paid $800 million i would gladly let Bill Gates rape my company anyday. Asking someone recently given that kind of money what they think is pretty useless.

    --
    HTTP/1.1 400
    1. Re:Who wouldnt be? by moderatorrater · · Score: 5, Funny

      Getting paid $800 million i would gladly let Bill Gates rape my company anyday Hell, for $800 million dollars, I'd let him rape me! That's a statement he can stand behind.
    2. Re:Who wouldnt be? by Znork · · Score: 3, Insightful

      Asking someone recently given that kind of money

      It's not the money. While I'm sure the recipient of that kind of money would be hesitant to comment negatively, the keyword here is recently.

      Ten months into an acquisition and a company of Microsofts size has barely noticed it's got a new appendage. They probably haven't even finished connecting internal networks or handed out ID's, never mind hooking up finance and reporting systems.

      See if 'anything's changed' in five years, once functional units have been merged into the mainstay and the real estate unit wonders why they have this expensive office in silicon valley, the culture unit has been briefed in the new culture is busy holding chairthrowing contests, and 'identity' is something you put in the corporate directory and 'identity management' deals with.

    3. Re:Who wouldnt be? by Macthorpe · · Score: 3, Funny

      For $800 million dollars, I'd put up a pretty convincing performance.

      --
      "It does not do to leave a live dragon out of your calculations, if you live near him." - Tolkien
    4. Re:Who wouldnt be? by DarkOx · · Score: 4, Funny

      unless its like a settlement you get after the subsequent rape trial... You are correct though if you agree to the 800mil up front that makes you a high priced whore, not a rape victim.

      --
      Repeal the 17th Amendment TODAY! Also Please Read http://www.gnu.org/philosophy/right-to-read.html
  3. Re:I was in a MSFT acquisition by pdusen · · Score: 4, Funny

    Funny how you have no identity and gave none for your company.

  4. Re:Given Yahoo's assistance in Totalitarian China. by Brian+Gordon · · Score: 3, Interesting

    What does that have anything to do with it? And nobody give me some smart answer- I mean directly, that has nothing to do with what we think about Yahoo's decisions about China.

  5. Tellme? by jo42 · · Score: 5, Funny

    Tellme is so popular I had to Google them to find out WTF they do.

    Either that or I live under a rock...

    1. Re:Tellme? by Anne+Thwacks · · Score: 2, Informative
      It was a very long time ago, but the essence of it was that they claimed to be a low cost ISP, with free bundled modem. When in fact the modem was a lame 2400 baud thing when I was already operating 56k, and the "internet" they offered was a walled garden, which you could easily break out of, but if you did, you were billed at a hideous rate without warning, so that I ended up with huge bills.

      In short, their business model relied on deceptive practices, and overcharging. I recall endless bills for things which I had just clicked on, and was unaware would cost me.

      I was not young and naieve, but came from a background of Usenet and Fidonet, and saw no reason why this stuff should be chargeable.

      Cancellation was a chargeable offence too: you were tied to a lengthy contract.

      --
      Sent from my ASR33 using ASCII
    2. Re:Tellme? by jshazen · · Score: 2, Informative

      I have mod points, but rather than mod parent *un*informative, I thought I'd explain. You're either misremembering the company that you're talking about, or there was some other company called Tellme that went out of business.

      1) The Tellme that the article talks about is a phone automation company, not an ISP.
      2) Until recently, Tellme has had clients in the Fortune 100, and has not charged individuals to use the service. (Tellme does have a *free* service (1-800-555-TELL) for the general public.)
      3) Tellme was founded in 1999, significantly after win3.1 and 2400 bps modems.

      Disclaimer: I work for Tellme (a Microsoft subsidiary), but my comments do not reflect any official opinion or policy.

  6. The 'Borg' icon really makes sense by giminy · · Score: 2, Insightful

    This is the first time in a long time that the borg icon for MS makes entirely too much sense...you will be assimilated, etc.

    --
    The Right Reverend K. Reid Wightman,
  7. Re:Given Yahoo's assistance in Totalitarian China. by Anonymous Coward · · Score: 5, Informative

    Oddly enough the original poster's comment had two sentences, the second of which was a general note about the effect of money. I simply wanted to point out that getting on a high horse doesn't have much effect when you're covered in shit yourself already. The US government and probably every single person on slashdot helps the Chinese government grow and maintaining it's power. We give it money, we give it economic growth, we give it technological progress and we all ignore it's continual humanitarian abuses. We argue that this is better in the long term ,we argue that we are actually helping the Chinese people and so on.

    Nonetheless every large company is China has probably had one government order or another requesting information on it's workers, or on it's customers or wiretaps or whatever. The exact same thing is done in the US, the police sometimes request things from companies and companies give that information up. If your company does business in China it can either follow it's laws or not do business there, no one seems to mind the former as long as they can save some money (including likely every single slashdot poster when they buy computer parts).

  8. Re:Tellme by TaoPhoenix · · Score: 2, Informative

    I dunno about popular.
    But I know of them, because part of their service line is to do Directory Assistance matches which gleefully tells you they are "powered by Tellme".

    --
    My first Journal Entry ever, in 8 years! http://slashdot.org/journal/365947/aphelion-scifi-fantasy-horror-poetry-webzine
  9. McCue has no direct connections to Yahoo by Anonymous Coward · · Score: 3, Interesting

    > Tellme founder and previous Yahoo co-founder, Mike McCue hasn't spoken to past-partner Jerry Yang

    This is wrong. McCue has no direct connections to Yahoo in his past. He founded Paper Software which was purchased by Netscape where he stayed on as a VP. He eventually started Tellme Networks with Angus Davis in 1999. Prior to Paper I believe he was at IBM.

  10. Biased by Comatose51 · · Score: 4, Insightful

    I'm not saying that the guy is biased but let's just think about this for a second. Anyone who've agreed to be bought by Microsoft has already found Microsoft to be a good match. In other words, if Microsoft wasn't a good match, the deal would have never gone through and we wouldn't have this article. It's kind of like asking a bunch of BMW owners what they think of BMWs. Most of them would have positive things to say, especially the new owners (which is similar in this case). To get an accurate picture we need to ask those who turned down Microsoft why did they turn them down as well as those who accepted the offer.

    To be fair, many of my coworkers are former Microsoft employees and most of them did have positive things to say about the work environment. Obviously, it wasn't the end all and be all of places since they did leave after all.

    --
    EvilCON - Made Famous by /.
    1. Re:Biased by blind+monkey+3 · · Score: 5, Insightful

      Isn't the he an employee of Microsoft?
      Surely he would be a brave person to bite the hand that feeds him... especially such a big hand, attached to a long arm at that.

      --
      BM3
    2. Re:Biased by DarkOx · · Score: 2, Interesting

      While I think you're point is generally correct SQL Server has little to do with Oracle. SQL Server is instread the poster child for why you never partner with M$ on a development project. M$ licensed Sybase for the core of SQL Server and the two oranization agreed to continue to share code. Now M$ went and spent all their engergy doing things very tightly coupled to Windows and therfore not useful to the cross platform Sybase product.

      They then marketed SQL Server more agressively and cheaper, sucking up all the oxygen as per usual. This has turned Sybase into pretty much a legacy vendor like Novell without Suse. Really its kinda similar to Windows and OS/2.

      --
      Repeal the 17th Amendment TODAY! Also Please Read http://www.gnu.org/philosophy/right-to-read.html
    3. Re:Biased by dirk · · Score: 2, Insightful

      While it's true that he may be biased, asking people who have turned down MS won't tell you anything, because they have no knowledge of what happens when MS buys you. What this guy is trying to get across (for either his own personal reasons or as an MS employee)is that a lot of the fears and FUD you hear about MS taking over a company (they will just fire everyone and keep the tech, they will totally assimilate you and change your culture, they will just buy you and bury your tech and push theirs, etc)are not true. Asking someone who didn't get taken over by MS what MS does when they take someone over is just silly, as they don't know. If you want to know if something is true, you ask people who have been through it, not someone who avoided it because of the rumours.

      --

      "Information wants to be expensive" - Stewart Brand, the same guy who said "Information wants to be free"
  11. Maybe, Maybe Not by OakLEE · · Score: 4, Insightful

    While I think a good segment of Yahoo's workforce won't have to worry so much, an acquisition like this is not going to happen without dead weight being trimmed off.

    Assuming the merger occurs Microsoft, regardless of its promises, will have to start integrating Yahoo into MSN or vice versa. It would make no sense to run two competing operations under one roof. Thus we can safely assume that either MSN or Yahoo's upper management are toast, unless Microsoft is completely idiotic and wants to integrate the two, which would create all sorts of loyalty and corporate culture conflicts.

    After management, who gets fired next depends on what Microsoft is buying Yahoo for.

    If you believe what Microsoft says, it is buying Yahoo for engineering talent, then most of the Yahoo's content departments become redundant and will be eliminated, while the engineers and IT people stay.

    If you believe that Microsoft is buying Yahoo because MSN's content is shit poor, then the content people are safe. The engineers and IT people become redundant as Yahoo moves over to a Microsoft-based back end. (For those who think that's impossible, remember that Microsoft moved Hotmail from BSD to Windows 2k with relative efficiency.)

    If you believe (as I do) that Microsoft is buying Yahoo for its account/user base, then every employee at Yahoo is conceivably expendable since the value in Yahoo would lie in one of its raw assets (users) and not in the organizational structure of the company itself. Buying solely for the user accounts, would obviate the need for Yahoo as an entity.

    Regardless of how you view it though, Yahoo as a completely separate and intact operation under the Microsoft umbrella is impossible just because it competes on a lot of fronts with MSN, and unless Microsoft's plan involves completely dismantling its MSN unit, some consolidation of the two is going to have to occur.

    --
    The sun beams down on a brand new day, No more welfare tax to pay, Unsightly slums gone up in flashing light...
    1. Re:Maybe, Maybe Not by norbac · · Score: 2, Insightful

      Assuming the merger occurs Microsoft, regardless of its promises, will have to start integrating Yahoo into MSN or vice versa. It would make no sense to run two competing operations under one roof.

      Not really. In the end all they want is online advertising. It may make sense to adopt a single advertising platform, but keep both properties (MSN, Yahoo) separate to appeal to the broadest possible audience.

    2. Re:Maybe, Maybe Not by Mark_in_Brazil · · Score: 2, Informative

      If you believe that Microsoft is buying Yahoo because MSN's content is shit poor, then the content people are safe. The engineers and IT people become redundant as Yahoo moves over to a Microsoft-based back end. (For those who think that's impossible, remember that Microsoft moved Hotmail from BSD to Windows 2k with relative efficiency.)
      I agree with the parent post in general, and even this point isn't bad, except for the "relative efficiency" part, even with the built-in "relative" disclaimer. Not only were there problems with the migration to Win2K (including a statement in 2001 that the migration had been completed, which was later retracted), but we also have to remember that Microsoft tried really hard to migrate Hotmail to Windows NT and failed. Microsoft acquired HoTMaiL in 1997, but couldn't migrate to NT at all, and only managed to make the Win2K migration 4 years after the acquisition. Since Microsoft had stated publicly that Hotmail was going to be migrated to NT, it's pretty easy to look at the whole story and say "ouch."

      I remember reading some internet columnist talking about the failed NT migration in 1999 or so, and I just found a description with references at the Wikipedia page on Hotmail. Specifically, the development history part and in the footnotes.

      It occurs to me now that Microsoft must have really believed the NT migration would not be hard, or the public statements about it before it was done would not have been made. The recent internal Microsoft e-mail exchange about the meaning of "Vista Ready" shows me that there are still a lot of decision-makers at Microsoft who really don't understand where their product sits in technical terms. They know its market position, but they don't appear know the real technical differences between Windows and other OSes.
      --
      "It is nice to know that the computer understands the problem. But I would like to understand it too." --Eugene Wigner
  12. Mike McCue did not co-found Yahoo by disassembled · · Score: 5, Informative

    Mike McCue is not a co-founder of Yahoo. Prior to starting Tellme in 1999, he founded a company called Paper Software, which was subsequently bought by Netscape, but he was never directly involved with Yahoo.

    The article is admittedly ambiguous about this point--it introduces Jerry Yang as a co-founder of Yahoo, and in the process, it inadvertently implies that he co-founded it with McCue.

  13. In other news... by imasu · · Score: 5, Funny

    Locutis of Borg tells Riker that "it's not so bad in here!"

  14. 800 million.... by seifried · · Score: 4, Insightful

    For 800 million dollars I'd be willing to tell people pretty much anything about how great MSFT is.

  15. Obligatory Futurama comparison by blake182 · · Score: 5, Funny

    Brain slug infected man tells non-brain slug infected man not to worry about brain slug infection.

  16. I wouldn't be so cavalier about it by melted · · Score: 2, Insightful

    You know, there are hundreds of hungry VPs in Redmond and they have buddies who they might not mind seeing in Tellme's general manager seat. They're a lot better connected than he is.

  17. Oblig Simpsons quote by RSevrinsky · · Score: 4, Funny

    Moe: [slowly] It's not so bad, Homer. They...go in through your
                          nose and...they let you keep the piece of brain they cut out.
                          Look!
                            [holds up a jar with a piece of brain in it]
                          Ooh! Hello! Hello there! Who's that big man there? Who's
                          that?
    Bart+Lisa: [droning] Join us, father.
            Marge: [droning] It's bliiiissss...
            Homer: Nooo!

    - "Treehouse of Horror V"

  18. Re:I was in a MSFT acquisition by Headcase88 · · Score: 3, Funny

    I hate how they totally changed the interface from Microsoft Mindwipe 2003.

    --
    "When the atomic bomb goes off there's devastation...but when the atomic bong goes off there's celebraaaaation!"
  19. Reminds me of .. by ElektroHolunder · · Score: 2, Funny

    "They float all down here, Richie. When you're down here with us, you'll float too!"

  20. Re:I was in a MSFT acquisition by Anonymous Coward · · Score: 3, Funny

    Thanks for this question, we are now number one result for Microsoft Mindwipe 2007.

    Yahoo!!!

  21. Difference between Yahoo and MS by Ilgaz · · Score: 2, Insightful

    (Thanks to a hotmail victim friend)

    Safari 3 on OS X Leopard:

    Hotmail: "This is hotmail light version, to get all hotmail features upgrade to Internet Explorer 6"
    Yahoo: "Yahoo mail beta works with Safari 3 now!"

    That is the difference between MS and Yahoo.