Saturday, February 02, 2008

Microsoft + Yahoo = Last Mughal (Moogle)?!

So the truth is finally out- world's largest software company has accepted defeat by almost saying - their index is better than mine. Microsoft wants the search and advertising capabilities of Yahoo, which essentially means an excellent products company is seeking to integrate the capabilities of a wonderful services company. Saul Hansell of NYT wonders likens it to taking two aircraft carriers and making a new one out of the spare parts. And mind you, two aircraft carriers of different make and flags. Will this work indeed.

The sad truth is that Yahoo is not just search or banner advertising. Its portfolio of services is amazingly diverse. In slightly curt business language, it is not a one trick pony.

Microsoft's letter to Yahoo's board is perhaps the politest communication one has heard from MSFT in last decade. Give me your crown jewels, I need them and I know you guys need money, else.. is a one line summary. So instead of frightening Google which is going beyong just web search and advertising, Microsoft has let the secret out- Rest of Yahoo can go to dogs, we want the search and banner advertising. Mr. Ballmer, this does not inspire any confidence of some real upcoming competition.

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1 comment:

mayank gupta said...

AH! you can't say that Microsoft isn't doing good here. I mean what Google is saying is that making any sense ? They are saying that microsoft is about monopoly and all they are not into innovation and they don't support openness...now if we ask the same question from google...then they won't have any answer for that.

They hold monopoly in search and online advertisement...how can that be any different from monopoly in OS ?

Microsoft is changing the way it works and I believe that if they can combine with Yahoo then certainly, it will be good for consumer only.