Yahoo, the New Hi-Tech Soap Opera

Microsoft: "Yahoo, you just don't understand. I really need you."
Yahoo: "Oh, no, you really don't need me. I'm not really worth it! And anyway, it's too late! I've already promised 3% of myself to Google, so how could you possibly want me now?"

There's quite an interesting discussion going on at Tech Crunch today about the finagling of Yahoo, Google, and Microsoft. As one commenter said, "These days I have stopped watching movies for entertainment. YHOO vs MSFT and Hillary vs Obama are more entertaining..."

I have to agree that this is one of those very strange soap operas in an age of acquisitions, mergers and where everyone is just trying to catch up with the competition. It's not absolutely smart for Yahoo to hide behind Google, and I would agree that this is a weird way to go. If it's to get their name in the news more often, then they're doing a good job of it, but maybe they need to take a lesson from Google.

Google, interestingly enough, hasn't been affected so much by any of this hullaballoo. The stealthy giant stands on the sidelines, not saying much, while still having the ability to make deals with Yahoo as if in a back alley way.

But then again...maybe, just maybe...Yahoo's founders are ready for an exit strategy?

Read the TechCrunch debate

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Open Social - Yahoogle?!

Last week, I saw something about OpenSocial being used through Google Gadgets.

Open Social still has a lot of kinks in it as a newly released October 2007 source code interface, although as more social networking applications are created, the more important it will be from a developer or marketing standpoint to implement this API. It's uncertain how quickly adoption of the API will pick up.

Even more astonishing--Yahoo! is combining forces with Google to strengthen the Open Social platform. And then you say, "What? Aren't they rivals??"

Yes, but according to BusinessWeek, "Yahoo is still fighting off Microsoft's marriage proposal, but it is still open to making friends."

Another site, Techtree.com, India, says the plot of the story is like many Bollywood potboilers. "Now Google and Yahoo! seem to be becoming the new best friends for each other."

As rivals, they have their interests much more aligned than with Microsoft, and it's no secret that Google is constantly pursuing products to reduce market share for Microsoft. Well, that explains the drama, at least for now.

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Yahoo Decides to Regroup

I jumped on to the web today to find out the most recent verdict on the Microhoo! investment. Yahoo has received a lot of pressure from stockholders and consumers who have complained that Yahoo would be a sell out if it sells to Microsoft.

I mentioned previously that Yahoo! and Microsoft would have had trouble merging, even though Microsoft has been adamant that a Yahoo! acquisition would strengthen their presence on the web. And of course, many questions arise about what happens with Yahoo mail and Hotmail if they were combined.

In any case, Yahoo finally concluded to Microsoft that they would have to step out of the offer because Microsoft had largely undervalued the company with its February 1st bid of $44.6 billion.

More on this in Infoworld's article, "Cheapskate."

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Microsoft loses sight of company goals

I read Dean Takahashi's column today about how Apple has been very successful at innovating their products recently and taken away some of Microsoft's market share.

Recently I wrote about Microsoft's offer to purchase Yahoo and I think Takahashi is right. Microsoft has to solidify their core business before they tackle the internet space. Yahoo as well seems to be losing sight of their core business by engaging in the Microsoft deal although more recent news suggests that stockholders are holding Yahoo back from making any deals, not to mention that such a merger would be challenging with two very different cultures.

Microsoft may have been largely successful due to the large market share in PC products versus Apple in early years, but if the price point is right, consumers may just switch to Apple, and especially since it seems to have more intuitive and better software than Microsoft's products.

*Updated: Photo to represent not the iPhone but the core business of computers, laptops and OS software. Courtesy of 65 Bit Computers.com

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Microsoft-Yahoo

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"

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