Friday, February 1, 2008


The world is abuzz today as Microsoft has proposed to buy Yahoo! AND Yahoo! is actually considering the offer. There are often mixed feelings for users of services acquisitions happen like this. Microsoft isn't great when it comes to innovation and has been better at simply buying companies who innovate well.

I'm surprised because in some ways, I felt like I should have seen this coming. Microsoft started to go after the big players when they made a bid on Facebook and it's starting to be come clearer now that they want a bigger share of the online space, while they have been leaders in desktop software for a long time.

Economically speaking, mergers are never good for consumers. First of all, Yahoo's problem recently has been in scalability and Microsoft can't solve that problem. There is going to be a lot of organizational change if and when the merger takes place. Second, Microsoft's goals and Yahoo's don't seem well aligned. Microsoft is a stodgy old, uninnovative company and Yahoo needs to figure out some way to act quicker, stay nimble against their number 1 competitor Google.

Maybe it's because I am a user of Yahoo products, but this just sounds like a bad idea.

Other articles fielded on this story:

  • TechCrunch-"Wow"
  • The Guardian UK - "What would a Microsoft-Yahoo deal mean for web users?"
  • InformationWeek - "Microsoft Proposes To Buy Yahoo For $31 Share, In $44.6-Billion Deal"

  • 1 comment:

    Dany-Sebastien said...

    Microsoft + Yahoo = Microhoo?