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Understanding Tech Issues with Reliable Vision of Innovation

by Jerry Liao, Philippines


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Why I think Microsoft should buy Yahoo

Nov 14, 2008 21:23

Talks about the possibility that Microsoft might again make an offer to buy Yahoo resurfaced after Google backed out from its advertising deal with Yahoo. Yahoo CEO Jerry Yang said during a Web 2.0 summit in San Francisco that it is to the best interest of Microsoft to buy Yahoo.

Microsoft withdrew its $33 per share offer to buy Yahoo after Yahoo and Yang demanded $37 per share. Despite the economic crunch, I still think this is the best time for Microsoft to make an offer. Why?

Yahoo's back is against the wall. Yahoo is in no position to make demands after the failed Google partnership. Yahoo should cross their fingers and hope Microsoft will come back to the negotiation table and be generous. What better situation can Microsoft ask for than this?

Although Yahoo and Microsoft offer a lot of similar services, the Yahoo community is something Microsoft should not and cannot ignore if they want to fight and compete with Google. The loyal users of Yahoo is a force to reckon with, and this is the main reason why Google made an attempt to thwart the Microsoft bid.

Lastly, should Yang step down as Yahoo CEO? This is a decision that has to be made by Yahoo stockholders. If Yahoo stocks will continue to drop and if Yang's resignation will be one of Microsoft's conditions before they make an offer again, then its inevitable that Yang should step down.

The challenge for Microsoft is to be able to combine the services of Yahoo and Microsoft, and offer something new and effective to its Micro-Hoo or Yahoo-Soft community. Otherwise, the community might just shift to Google.

God Bless us all!



4 comments   |   Share


 

    Talkback
aweysham says...
I would just as soon not have Yahoo rather than a Microsoft Yahoo. Right now Im a Yahoo user, mail & messenger. I'd like to keep it only Yahoo. I'm afraid MS would just mess it up.

Nov 15, 2008 13:51
 
 
Guwahati says...
There has been numerous instances of Yahoo's conflict with its customers regarding paid services, specially Flickr.
The way Yahoo operates is not to the liking of many who are shifting to Google. And when it comes to Microsoft clubbing Yahoo, i find it silly. Its like a Yahoo bail out package from Microsoft, not a take over.
Microsoft is doing well on its own and there is no need whatsoever to bring Yahoo into its stable.
Bill is making enough Billions selling the Ms OS at a crazy price and then seeking forgiveness through Bill and Melinda Gates Foundation.
Anyways I as a former Yahoo user have many a reason to strongly believe that Yahoo would do more harm than add any substancial benifit to Microsoft in case of any sort of tie up.

Nov 15, 2008 14:09
 
 
techguy says...
@aweysham: The smartest thing Microsoft should do is to leave Yahoo as it is even if they do decide to acquire it. Another point, Balmer and Yang should not head the new company. They should hire someone who really understand the online world.

Nov 15, 2008 19:46
 
 
techguy says...
@Guwahati: I strongly believe that Microsoft is after Yahoo's community. Microsoft will sell the ads of Yahoo via its Microsoft Adcenter. Balmer already hinted that a collaboration between the two companies is very possible. But knowing Microsoft, they won't settle for a partnership, they want total control.

Nov 15, 2008 19:53
 
 
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About Jerry Liao

Jerry Liao is an IT consultant in the Philippines who conducts seminars on various tech topics. He is a regular columnist of Manila Bulletin, a member of the academe, a system developer and a system analyst. He is a frequent fixture in press conferences and tech launchings, most of which are posted at infochat.com.ph. He loves to tinker with the latest gadgets and gizmos, but his most cherish possession are his children.

 
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