Once Again, Talk Of Wedding Bells For Microsoft And Yahoo

from the shotgun-marriage dept

Apparently it’s the season to rehash old M&A rumors. Yesterday, an analyst breathed new life into the idea that CNET could be on the auction block, something that’s been talked about for years, with nothing to show for it. Today, the New York Post is reporting that Microsoft is close to making a bid for Yahoo, or so its “sources” claim. This same rumor popped up almost exactly a year ago, as many felt that the companies had to do some sort of deal to battle back against the Google juggernaut. Since then, neither company has made much progress against Google. The rumor can’t be dismissed entirely, in part because the New York Post has a surprisingly good track record on these kinds of things, and it’s possible that Microsoft is growing increasingly desperate, following its failure to win DoubleClick. But even if the companies do a deal, it’s hard to see how that would solve either of their problems, since it ultimately comes down to products and consumer value, which is at the core of Google’s success. Update: And just like that, it’s being reported that all discussions about a deal are now off. Don’t worry, it can’t be too long before these rumors bubble up again.


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Comments on “Once Again, Talk Of Wedding Bells For Microsoft And Yahoo”

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15 Comments
RandomThoughts (user link) says:

Microsoft missed in other acquisitions and has to do something, they don’t have a choice. Microsoft / Yahoo does make a lot of sense. Microsoft just bought Screentonic, which is a mobile ad platform. Microsoft needs to improve their advertising platform, when you look at the Comcast / Yahoo deal, merging Microsoft with Yahoo gives Microsoft technology, infrastructure, contacts with advertising agencies (though Yahoo) and more. They both could really do well.

RandomThoughts (user link) says:

James, I don’t own stock in Yahoo and never have. It makes sense from a corporate perspective. Balmer has admitted that they are weak in the web space and has missed out on Doubleclick. Microsoft has to do something, and Yahoo does make sense.

Why do you think Microsoft bought Screentonic? They know they need to get into advertising in a stronger way.

M&A’s are typically done out of weakness. Don’t you think Microsoft qualifies?

James says:

Simple answer? No.

No it doesn’t make sense. Yes, Microsoft does/has bought other companies in lieu of growing their own products (achieved by purposes of acquisition).

While I have no say in the situation, I do not personally feel this is an area where Microsoft will choose to do that. It seems to me, the cost to do so does not match the benefit recieved.

And yes, I’m well aware of the rediculous amounts paid for MySpace, YouTube and offered for FaceBook.

For the record… I own stock in neither company.

Bill Gates says:

Yeech

God I hope not. I really, really hope not. Microsoft can’t come up with an original idea to save it’s soul. It’s corporate culture is riddled with PHD-MBA-based highly political group think, which inherently goes against the ideology of collaboration and creativity, the cornerstones of Web 2.0.

Any good idea has to be acquired because internally, they can’t do it themself.

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