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Microsoft Going After Yahoo! Again
Corrupt writes "Microsoft on Monday released a letter that supports investor activist Carl Icahn's efforts to unseat Yahoo's board, as well as confirming its interest to explore a bid to buy the entire company, or just its search assets, with a new board."
...adapt to their defenses and continue assimilation.
Having big boobs and a catsuit helps too ;)
I want peace on earth and goodwill toward man.
We are the United States Government! We don't do that sort of thing.
Microsoft is showing how scared it is of losing the online search battle. Maybe because it realizes that it is also losing ground rapidly in software.
The nice thing about Rome is that we still have lots of pretty statues...too bad the same can't be said about old code.
Didn't Microsoft already decide to abandon the quest for Yahoo! and purchase the search technology from PowerSet?
To be a fly on the wall in these meetings:
Ballmer: Let's buy Yahoo.
Board Member: They won't sell.
Ballmer: Did you ask them, or tell them?
Board Member: A little of both.
Ballmer: Did you say we'll be their best friend?
Board Member: Yeah, but Yang just watched Pirates of Silicon Valley and isn't fooled.
Ballmer: Is that the movie with Johnny Depp, or the good one with Jenna Jameson?
Board Member:...
Ballmer: What's this "PowerSet" thing?
Board Member: That's a start-up Websearch company. They're doing a lot of what we want to do with Live search.
Ballmer: Great! Buy it!
Board Member: Okay, so I guess that takes care of the Yahoo--
Ballmer: Buy them, too!
Board Member: What? Why? Powerset will--
Ballmer: They're working with Google! It's anti-competitive! We have to buy them! And it will make Live search even stronger after we incorperate SourPet--
Board Member: PowerSet--
Ballmer: Whatever! Just buy Yahoo so we can say we're not anti-competitive.
Board Member: You want to purchase two separate Internet search systems, incorperate them into our failed system, to avoid anti-competitive practices?
Ballmer: Finally! It's like talking to a brick wall sometimes, y'know?
Those who believe the Internet is private,
find their privates are on the Internet.
A company with Microsoft's resources should be able to come up with a better business plan than a buy-in. I think they're impatient, for some reason not yet disclosed.
It's all about Google.
If I were an MS strategist, Google's search business wouldn't scare me. If you lost sleep every time somebody made money doing something technological you'd go mad.
I'd be a little more concerned with Google's foray into online office suites, but I'd be fairly confident that wasn't a serious problem in the short to mid term.
The thing I'd be freaked about is Google's casual way of generating APIs for its popular services. That hits Microsoft where it lives.
This is a relatively low cost, low risk game for Google. Nobody expects them to provide soup-to-nuts service for all your IT needs; they're just throwing API shit against the wall. If it sticks, good for Google, bad for MS; if t doesn't, MS feels no pain, but neither does Google. It's just another interesting idea from Google.
This is like assymetrical warfare: MS is the conventional force, and Google is the guerilla force. Google chooses when and where to stike, and if it fails it doesn't cost them much. Tactical failures can even be strategic victories if they provoke a costly response. From MS's standpoint, it is necessary to limit Google's ability to strike when and where it will, and get away without much loss no matter the outcome. One thing you can do is start to poach on Google's engineering talent; taking people out of a team is disruptive. Another thing you can do is try to hurt them in places where they live, so you want them so focused at keeping their ad revenue flowing that they can't do anything else.
Google's strategic weakness is that it doesn't provide full solutions. It is an interesting technology company, not a product company. That's good for MS because once Google (or anybody else) provides a complete replacement for Office, Exchange and Sharepoint, bad things are going to happen to MS.
Gaining control of Yahoo makes sense for several reasons. First, it keeps them from cooperating with Google, which is the opposite of what MS wants. MS wants Google to have to work harder to get ad revenue, not less. Second, Yahoo is a product company, like MS; it could be the first to offer the complete, MS free product stack. Equally bad, Yahoo could goad Google into upgrading its products so they look more like a viable replacement for MS to enterprise customers.
The picture MS would prefer is Google struggling to maintain ad revenues, and facing a steep uphill battle in product adoption and API mindshare when it looks at MS dominated product areas.
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