After the blundering of Exec’s at Yahoo! it’s harder and harder to look at the company with promise. They couldn’t get a deal done with Facebook – open raw egg – they are left in the dust by a company they helped get started (Google was used as their search provider) – pull arm back – and Microsoft bids to take over the company – thrust unformed chicken goo at face. It’s especially embarrassing when Yahoo!’s CEO Yang comes with out with the proclamation that they are undervalued because the acquisition of Yahoo! would add significant value to Microsoft. Ummm, yeah… that’s why they want to buy you. Is there another reason to spend billions?
So where does Yahoo! go now? Are they really going to fall so fast that they will quickly become a trivia question answered by Alex Trebek? Google seems like the clear leader in “Search” and I don’t think it would be fair to compare it to Yahoo! because that’s not really what they do anymore. They aren’t really a great starting point to find information. I think they excel in providing information. Instead of categorizing them as “Search” or a “Portal” I think it would be best to describe them as “Media”. So if Google is a phone book then I’d say Yahoo! is a magazine. If you have a purpose and want to find something begin with a phone book. If you have nothing to do and would like to have interesting information brought to you then pick up a magazine.
Yahoo! and Google just aren’t comparable and I believe that Google will continue to grow more than Yahoo! Nevertheless, there is certainly a demand for an Internet-Media site and Yahoo! is probably the best out there right now.
Google is probably more comparable to Microsoft because it acts more like an online operating system for its users. It’s an interface that makes it easier for users to do what they want. That’s why, if the leaders of Yahoo! weren’t so biased against Microsoft, the deal between Yahoo! and Microsoft makes sense. Society is always looking to be entertained, which is why Yahoo! is such a good idea. So, Yang, wipe that egg off your face and get a deal done that will help keep Yahoo! the premier media site online for a long time to come.
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Lew · March 19, 2008 at 10:11 am
Couple of things.
I would suggest that Yang was looking out for the best interests of shareholders with his posturing. That is part of his job as CEO. Unfortunately for Yahoo!, looks as though leverage to drive the price up to Microsoft isn’t there. Nice try though. Have to give him that. Or do you?
The other point might be less about business and more about culture. Is there anyone who doesn’t think that Microsoft is a bloated bureaucracy? An adjective never used seriously to describe Microsoft recently would be swift. Resistance to being absorbed into the behemoth that is Microsoft makes a lot of sense from a corporate culture perspective.
Microsoft won’t be confused with companies that adapt to the marketplace swiftly. They are akin to a fleet of battleships. It takes a long, long time for the fleet to change course. But when it does, you don’t want to be staring down the barrels of their weapons.
In short, you’re right on with your basic premise. Take the money and run!
Lewis Wright · March 19, 2008 at 12:41 pm
I’d rather take slow correct turns than fast wrong ones. Every move I see Yahoo making recently is like “what were they thinking?” For example, why on earth would they go begging Ruport Murdoch to bail them out? And you think Microsoft would limit what Yahoo would be able to do?