Microsoft and Yahoo are in the talks again
Yahoo just named new CEO, Carol Bartz and it seems Yahoo’s chairman Roy Bostock is already talking to Steve Balmer (Microsoft CEO) about Yahoo-Microsoft merger. Valleywag reports:
On my way down the elevator, I was stopped on the 5th floor and in walk Roy Bostock and Steve Ballmer. Kind hellos were exchanged. As we entered the lobby they both walked out and seemingly proceeded to lunch together.
The article goes to speculate on the foolish Boystock moves such as naming Jerry Yang CEO, and avoiding the merger, criticizing Bostock’s moves. Author also mentions that AOL people were present at the meeting, making Yahoo + AOL then Microsoft – a possibility.
Yahoo + AOL + Microsoft
Strategically speaking, Microsoft needs Yahoo like a blind man needs a walking dog to get around the city. The dog in this case, can use the blind man for food, but it can just as well make it alone. Though Yahoo’s market share is in decline, it can still be a good competitor to Google, something that can’t be said about Microsoft at the moment.
Is it possible Microsoft execs are plotting to swallow 2 fish in one bite (AOL and Yahoo)? The combined market share would be around 25% (AOL ~4% and Yahoo ~20% in US). They will have to think of a move to make Yahoo get AOL and then buy the two, the question is how? In my opinion it would be through negotiations, favors and some bribes, though I can be wrong.
Permalink Comments Back to Top Back to Homepage
