Microsoft and Yahoo
So, I still think a Microsoft/Yahoo merger would be a mistake for both companies. This is reaffirmed by the already contentious relationship they have - Kara Swisher is reporting that Microsoft went public with this to force Yahoo’s hand.
“I woke up this morning and couldn’t believe that they did it,†said one exec. “They had made a lot of overtures, but this was astonishing. I could not believe Microsoft would be so aggressive.â€
Microsoft gave Yahoo two days to respond to their private offer. Two days. They’re already not getting along, culturally.
So, now Silicon Alley Insider is reporting that there’s some private equity that could enter the mix. While, personally, I don’t think that Yahoo! should be acquired or taken private, I think that of the two options going private would be way mo’ better.
It’d help get Yahoo! out of the “next quarter” mentality. Private equity could maybe come in with some real vision/strategy and impose it on the company.
I think Yahoo! while it has an execution problem is an inherently valuable site - their brand, their content, their various platforms are easily capable of becoming the internet powerhouse they once were. If they have to be bought, though, I’d like to see private equity come in and really focus this company. Give them some direction and I am sure they’ll be able to kick some butt.
