More thoughts on Yahoo/Microsoft/Google

If you’ve read my first two blogs on the possible acquisition of Yahoo by Microsoft (or Google…) – if not they’re available here and here – I summarised that potentially Microsoft taking over Yahoo could be a good thing, provided they take the right strategy and approach.

Television Financial “Guru”, Jim Cramer suggest “The outside of Yahoo is very good. The inside? They haven’t been able to figure out how to monetize these pageviews. So basically, [Microsoft] can take their pageviews [and] fire everyone. Maybe there’s some sales people you keep.” (source – and view video here).

I think this is spot-on. I believe the acquisition will cause a huge round of redundancies in Yahoo – their assets would be retained and the extra “baggage” of people removed, with key folks kept in place to either rip their minds of their emotional intelligence and/or align their thinking into the Microsoft mantra.

Microsoft is using the search dominance as a key reason for the take-over – a Microsoft/Yahoo combo would have 30% of the search market against Google’s current 60%. With such a large transaction this will make good sell to the regulatory bodies – equally I’m sure Google will point out all the other reasons why this would be bad (for them).

My view on the take-over then has shifted somewhat – I’m still in favour, but would look for reassurance that the things Yahoo is known and good at are not lost in a sea of MS services and thus lose their effectiveness (thinking Flickr particularly).


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