Charnell Lucich

Yahoo Is Desperate – Microsoft Moves In

Posted on: February 1, 2008

Microsoft Offers $44.6B for Yahoo.

Microsoft Corp. has pounced on slumping Internet icon Yahoo Inc. with an unsolicited takeover offer of $44.6 billion in its boldest bid yet to challenge Google Inc.’s dominance of the lucrative online search and advertising markets. The Justice Department says it is interested in reviewing antitrust issues associated with it.

The surprise offer of $31 per share, made late Thursday and announced Friday, seizes on Yahoo’s weakness while Microsoft tries to muscle up in a high-stakes battle with Google likely to define the technology landscape for years to come.

In a statement Friday, Yahoo said it will “carefully and promptly” study Microsoft‘s bid.

With its profits steadily sliding, Yahoo‘s stock slipped to a four-year low earlier this week and a new management team has been trying to steer a turnaround but sees more turbulence through 2008.

The announcement lifted Yahoo‘s share price by almost 50 percent in morning trading, while Google fell almost 8 percent, dragged down by a fourth-quarter earnings report that missed Wall Street expectations.

In conference call Friday morning, Microsoft Chief Executive Steve Ballmer indicated he won’t take no for an answer after Yahoo rebuffed takeover overtures a year ago.

I spoke with a co-worker this morning about this and his first response was, “If Microsoft buys Yahoo, I’m closing my Yahoo Mail account.” I pondered that for a moment and since I couldn’t figure out the logic behind that, I had to ask why. The reason behind his response, still puzzles me:

10:37:59 AM ***: http://biz.yahoo.com/ap/080201/microsoft_yahoo.html?.v=14 but you already know 🙂
10:39:30 AM ***: if microsoft buys yahoo
10:39:35 AM ***: I’m closing my yahoo mail account
10:39:54 AM ***: and that’s sad 😦
10:39:59 AM ***: because I’ve had that thing since like 1997
10:42:48 AM Charnell: So why would you close your account?
10:44:03 AM ***: because I’m not interested in microsoft being a part of my life
10:44:49 AM ***: although I have a hotmail account, I never use the mail portion, and I rarely use the msn portion, as most people moved over to yahoo
10:45:30 AM ***: due to it being a windows only thing (although there are open source alternatives, but do you remember microsoft would change something and it would break, just a complete nightmare)
10:45:48 AM Charnell: ah
10:47:28 AM ***: I don’t hate microsoft, it’s just not the right solution for me, plus I find their style of applications absolutely revolting, and their license agreements overly restrictive
10:47:58 AM ***: they only produce garbage software

Believe me, anyone who knows me, knows that I am no fan of Microsoft. My network at home runs Debian, my desktop at work runs Debian, and for my laptop I use a MacBook. But I believe that Microsoft has it’s place in the market, it belongs there (rightly so), and I’m not afraid to use I do not have coronaries when I have to use their products providing they work quickly, efficiently, and properly.

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3 Responses to "Yahoo Is Desperate – Microsoft Moves In"

I use Flickr, a Yahoo property. If Microsoft buys Yahoo I can quickly see rm -fr /data/flickr. Aargh.

See what the New York Times has to say

Khurt – can I ask why you would do that? I’m very curious what the different reasons are for people feeling this way.

Hey CPu, I’m gonna troll here for a little while since I’m being too lazy to post on my own blog recently…Hopin’ ya don’t mind! 🙂

Anyway, more to the point, I see a lot of people who won’t support a particular service/product/third-world economy/etc. simply because it’s owned by a company or group they don’t like. I don’t have an iPod and though I claim it’s because I don’t want to have to install iTunes[cough…spyware/malware] on my computer to use it, there very well may be some subconscious part of me that doesn’t want to give money to Apple.

Personally, if a service works and is useful to me, I don’t much give a rat’s hind end who owns it. I love Flickr and will keep using it regardless of who owns it. If the service begins to suffer and/or start working like MSN Hotmail, I will cancel it faster than a packet can move down an OC-3.

But, ultimately, I guess it’s all ad-dollars at stake here, and it seems that MS is pathetically late to the party. So, will their buying Yahoo! really matter in the long run? I doubt it, since I think Google already has a commanding lead in the ad-world, especially since while MS is buying up yesterday’s ideas, Google is busily working on the next big thing.

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