Friday was a big news day, topped by the speculation around a rumored $50 billion merger between Microsoft and Yahoo. At first the New York Post made it look like the deal was all worked out, but later the Wall Street Journal said the deal isn’t happening, largely because of Yahoo disinterest. Summary of the day: Yahoo shares were up almost 10% and Microsoft down a little over 1%. The DMW100 index was up 0.23%. Here are some interesting opinions on the logic of a Microsoft/Yahoo deal from around the Web:
Duncan Riley of TechCrunch:
If the deal comes to fruition, the takeover would be one of the largest corporate takeovers in American corporate history, and likely the largest ever in the Tech sector…
It certainly is a strange time when Microsoft accuses Google of anti-competitive behaviour one day, then activily seeks to acquire a leading competitor for the sole purpose of trying to compete with Mountain View based uber company the next.
Karsten Weide, program director for digital media and entertainment at IDC (from PC Magazine):
If Yahoo became a full fledged business unit beholden to Microsoft culture and Microsoft executives, I don't think it would work. Yahoo was always a culture where people felt the Internet is here to make the world a better place. While it is true that Yahoo has changed and become a lot more corporate, when [Yahoo] looks at Microsoft, they see a very fierce, very aggressive company that is very much beholden to the bottom line and not much [interested] in making the world a better place.
Charlene Li, Analyst, Forrester Research:
Given the messiness of a full out merger – and also the limited benefit it would bring to Yahoo! – I believe that a merger won’t be in the works anytime soon. More logical would be partnership agreements where the strengths of each company are shared. These tentative first steps to a merger would make a lot more sense, giving both companies the ability to “test the waters” before jumping into the deep end.
But if I’m wrong and a merger does get announced, I wish the two companies good luck – they are going to need a lot of it to pull it off.
Henry Blodget, Blogger and former Wall Street internet analyst:
Would it be a smart strategic move for Microsoft and Yahoo to combine forces? Absolutely. Is the best way to do this to have Microsoft suck Yahoo into the massive Windows/Office borg? Absolutely not. If Microsoft buys Yahoo, Microsoft should immediately spin the Yahoo-MSN business out as a separate company. If it doesn't, both Yahoo and MSN will die.
With all due respect to the amazing talent and resources at Microsoft, no company can do everything. Microsoft is now so massive and broad that it is competing with IBM and Oracle on one end, and Sony, Apple, Google, and Yahoo on the other. All of these businesses are complex and tough, and focus is a major advantage…
This is why a better plan would be for Microsoft to just swap MSN and a few billion dollars for a major (but not majority) stake in Yahoo.
Alas, this sensible solution seems unlikely…because ego will get in the way.