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AOL Jumps Into the Ring with Microsoft, Yahoo!, Google
mikkl666 writes "Even just since this morning, there's much to report in the ongoing fight between Microsoft and Yahoo!. After Yahoo! announced yesterday that they are testing Google AdSense, Microsoft reacted with a comment pointing out that 'any definitive agreement between Yahoo! and Google would consolidate over 90% of the search advertising market in Google's hands.' Ironically, they complain that 'this would make the market far less competitive.' Both companies try to team up with strong partners, as well. Yahoo! and AOL are now closing in on a deal to combine their Internet operations. And of course, this morning's news was that Rupert Murdoch's News Corp. is apparently in talks for a joint bid for Yahoo!"
Yea like the end user really cares what the servers are running off of. I really don't care what OS their servers are running off of just as long as their service is fast and reliable to me.
The real issue of a MS Monopily in the search market is that they will leverage IE 7+ and Windows to get all the features leving Macs and Linux user using a Sub Par version of the web site.
Why is MS Scared to death of google? It is because they are offering for Free off the web High Quality application that really don't care on what OS or office suite or browser you use. Grandted google docs is a bit clunky but it has potentional for greatness. And like Microsoft sucesss it just needs a competive advantage not be the best product.
If something is so important that you feel the need to post it on the internet... It probably isn't that important.
That's certainly better than Yahoo+Google merger that has EVIL written all over it.
Obama likes poor people so much, he wants to make more of them.
Combining their efforts, aye? Can't get much crappier than that...
"He who can destroy a thing, controls a thing." --Paul Atreides, Dune
AOL+Yahoo doesn't strike me as being able to produce better services than Yahoo alone could. Or MS+Yahoo. Or any other combination.
The bigger a company is, the more cultural inertia it has, the less willing it is to try something new. Would strapping AOL's "never change anything" mentality to any company make it better? At least Microsoft has occasionally given one of its subdivisions such free-reign that it's been able to innovate (Microsoft mice, xbox360's networking features). Still, MS is mostly extra baggage.
Yahoo by itself is already producing tons of different services, on the off-chance that a handful will be successful. Combining with someone larger will certainly slow that down. Would that slowdown be offset by making some more likely to be successful? I doubt it.
you will find all the Democratic information just fine, just with the good bits "edited" out. Just as all the Republican info will be on show, with the bad bits missing.... And there will be more Blonde Buxom babes on the search pages...(WooHoo more Asus beach babe pics!)
Laters Sol "Have you found the secrets of the universe? Asked Zebade "I'm sure I left them here somewhere"
I would welcome an AOL-Yahoo merger, way over an MS-Yahoo destructo-fest.
expandfairuse.org
The little boys in Redmond (Ballmer no exception regardless of his girth) have always been a bit delusional. If 90% of a market is held by one company in one market and that is anti-competitive then 90% of a market held by one company in the OS market is obviously anti-competitive.
The Redmond boys need to stick to copying software ideas and stay out of the big boy markets where they obviously are limited in mental maturity.
You can lead a man with reason but you can't make him think.
I'm inclined to agree with techdirt's analysis... this is an indication that the big players are taking their eyes off the ball. The more mergers/reshuffling/synergistic-focus-shifting that goes on among these companies, the more opportunity there is for an small, innovative and efficient company to step into the void.
Ok lets look at the numbers on this.
Looking at Time Warner's annual report you can see that from FY05 to FY07, AOL revenues are down 36%. Conversely, operating income excluding one-time items is up 21%.
This implies that the AOL division has remained profitable primarily by cost cutting, not by natural growth in its business. For example, it took them $7.52 to generate $1 of operating income in 2005. That ratio (revenue/operating income) is now down to $3.89.
Yahoo's business, on the other hand, is the mirror image of AOL's. Revenues from 2005-2007 are up 32.55%, while operating income is down 66.61%. This is mainly due to operating costs increasing 67% in the same period.
So essentially, you have a business, AOL, who sucks at generating revenue but is good at cutting costs, being bought out by a business, Yahoo, that is good at generating revenues (we'll see whether that holds in a recessionary environment), but horrible at keeping costs under control. If the two managements can learn from each other, this combination might actually work out for shareholders.
Of course, for Yahoo employees, it means pack your desks up because heads are rolling if YahAOL is formed.
The sun beams down on a brand new day, No more welfare tax to pay, Unsightly slums gone up in flashing light...