Tag Archives: buy-out

Yahoo + News Corp = Evil Internet

Yahoo has announced it’s looking at letting Murdoch’s News Corp. take over it’s hallowed halls for $40 a share (Microsoft offered $31). What a travesty for internet users worldwide! News Corp. a.k.a the axis of evil.

They have idiots pushed in our faces like Bill O’Reilly (O’Reilly Factor show on Fox), who continue to push the Neocon dictates of Herr Merdoch to the masses. Making Yahoo part of this awful corporation (there goes my chances for working at News Corp. Shame.) would be a terrible move in the long run. Don’t people get that no matter how much Microsoft bashing goes on, the prospect of News Corp. taking over Yahoo is one hundred times worse.

As I’ve mentioned, I believe the Microsoft based acquisition could be a very good thing – maybe Yahoo is trying to force their hand in raising the offer…. if that’s the case, I fear it could backfire to the detriment of us all.

Yahoo rejects Microsoft – “now go away or I shall taunt you a second time”

yahhh.jpg

Yahoo now says Microsoft didn’t offer enough – the offer was $31 per share which was just over 60% over the share price at that time. It also consisted of half cash, half stock of which the latter lost value recently.

Observers think that Microsoft will make another bid and I agree; strategically Microsoft need this purchase to secure a leading position in the various markets they are involved in. Without this, Google’s dominance will cause a ruckus in the MS org I’m sure… Other rumours suggest that Yahoo is looking to court other buyers such as Time Warner – whether this is to force Microsoft’s hand or whether they have some other motive one can’t conclusively say…

My articles (original) (follow-up)

Google eyes up Yahoo and eyes down Microsoft

yahhh.jpgReuters reports that Google is now considering its’ position on acquiring Yahoo in light of Microsoft’s recent bid proposal, whilst “a second source close to Yahoo said it had received a procession of preliminary contacts by media, technology, telephone and financial companies.” (quotes Reuters).

Microsoft and Google are the true contenders here in my opinion; The other companies would be making strategy moves which would be of benefit to themselves in the sense they would rape and pillage Yahoo assets, leaving an empty husk that was once a revolutionary company (Netscape anyone?).

Google’s argument revolves around MS’s dominance in the browser and OS. Equally Google forgets that Yahoo being #2 to Google’s #1 in the Search service means that Microsoft gains there, whereas Google would get nothing new – of course they would absorb other services like Flickr and maybe integrate with YouTube (somehow), but I personally feel that MS would make best use of what they aquired.

That being said, we have to consider what happens to the brand; It’s a powerful brand right now – albeit not nearly as powerful as G or MS – if MS take over Yahoo they’re sure to wind down the branding, consolidate the IM services and tie everyone back to having a WindowsLive! ID – that’s not such a great thing.

IF Microsoft could somehow retain the independent feel to Yahoo whilst rolling up services back into the main corporate stream I think that would work pretty well in terms of consumer positioning – much like Google/YouTube. They (MS) also need to consider their strategy for webservices and web APIs – Google is rapidly pushing out new ones which are way ahead of anything I’ve seen out of Microsoft – this is where the power of Web 3.0 will come into play – more SOA with Web APIs, extended mashups and seemless intelligent services combined from many sources.

Google has started to make rumblings about this proposal (understandably); Ars Technica is covering this in an article – quote “It isn’t an understatement to say that Google apparently opposes this deal. Going for the jugular, Google’s Drummond instantly suggests that the Redmond giant could (would?) use unsavory tactics for unfair advantage, ultimately harming the Internet and the very open and innovative environment that’s driving it.”  This is the one concern I do share – that Microsoft will MS’ify all the services and close off systems so that you’re locked in to MS proprietary systems and components.

Why Microsoft taking over Yahoo could be a good thing

Microsoft Yahoo

Microsoft has been seen for many as the evil of the IT Industry. Its dominance in many of the markets is undeniable – from Operating Systems, Office software to Game Consoles, the company has come a long way since making QBasic for IBM.

In the last few years we have also seen the emergence of Google – what started as a reasonably simple search engine service now expands way beyond that. Google was long seen as the good guy to Microsoft’s corporate whore but times have changed and Google has now an expanded set of services which makes some think it’s also going the same way as MS.

In the meantime, Yahoo, who like Google started with search engine services, have rapidly expanded their business through acquisitions and strategies, bringing a wealth of services such as Yahoo Messenger, Yahoo Shopping and Flickr to name but a few. Now that news has hit that Microsoft is targeting Yahoo as an acquisition, some are wondering what this means for the market.

Microsoft needs to expand its’ business far more than it has in the last few years; equally Yahoo has started to become stagnant and recently announced 1,000 job layoff in restructuring. Meanwhile Google has been an unstoppable train that’s just getting bigger and bigger. With all that in mind, I think this merger/buyout would benefit many people – not just the Yahoo shareholders.

Yahoo has invested in some niche markets which Microsoft has largely avoided – (Flickr, Yahoo!UI), whilst Microsoft has the lead in OS/, Office, development languages and game consoles, but needs to build out it’s services more. With Yahoo in tow, I think MS could blend it’s Photosynth product with Flickr for starters. Imagine taking photos from your trip and merging them in some interactive experience with other people’s photographs to create a 3D type experience.

Without this combination of services, Google poses a significant threat to Microsoft and its’ market dominance – Google seems to have limitless capital to invest in new and improved services – look at Google Maps, GMail, Search, etc – they’re all market leaders that just continue to build more and more great functionality which MS/Yahoo find hard to compete against.

There is an outside player which I am interested to see how this pans out – Adobe. They’ve made some great products such as Photoshop, Premier, Flex, Flash, etc. These products are largely complementary to MS and Google – both would do well to incorporate Adobe products in their own product line… I predict Adobe WILL either be in the news before 2008 is out – either buying-out another company or being bought out…

LINK – Quick overview of MS and Yahoo services

UPDATE – More on this subject on a more recent post >