Microsoft makes an offer for Yahoo
$45 billion. Huh. It was almost a year ago that the news surfaced that MSFT was in discussions with YHOO for the buy. Now they seem to have made a $45 billion (unsolicited) offer for the troubled company ($31/share). This on top of the news that Terry Semel is completely out of the picture now.
Ultimately, I think this is a dumb idea. I mean, maybe it sounds good on paper and makes some kinda marketshare monster, but really. It’s two companies that have trouble executing. They’re big, they’re lumbering and they’re lacking vision. Both companies are filled with the smartest people and are doing interesting things in pockets and silos here and there, but overall are stagnating. Yahoo’s just not doing well in the market, sure Microsoft wants to boost it’s ad numbers, but YHOO’s income is down from a year ago. A lot. Their search ads are beleaguered and their display ads could come into Google’s sights at any moment.
What does the combined company bring? Sure they can probably lay off even more folks. But what both companies need more than anything else is strong, forward looking vision. That and the ability to execute that vision from the top down. Combining two huge drifting companies that have difficulty bringing things out just doesn’t make sense to me. I mean, nothing on the level of AOL buying Time Warner, but still, senseless if not outright dumb. What do you think? I know this is something all kinds of folk smarter than me have been asking for, I just don’t see it.
Huh, just wondered if those Yahoo layoffs were preparatory for this buyout? Seriously, I hope not.
UPDATE: And the important question… What do you call a Yahoo/Microsoft behemoth? Personally, I think it’s called Microsoft but with the Scott approved brand LiveYahoo!
UPDATE 2: Here’s some more coverage. The more I think about this the more I think about what a stupid idea it is.
