Barney's Blog

Blog archive

Yahoo Ain't Worth No $44 Billion

If you listen to Wall Street, paying $44 billion for Yahoo is the smartest idea since E=mc2. Google's stock is down, and Yahoo is on the rise after Steve Ballmer's public pitch for the No. 2 search engine concern.

Let me toss some cold water on this little love-fest.

I don't see anything in the Yahoo portfolio that Microsoft doesn't already have. It's kinda like Time magazine buying Newsweek, Coke buying Pepsi or BP merging with Exxon -- just more of the same. Even worse, Yahoo is on the decline (its market share and financials are more like Boo-Hoo than Yahoo!).

Yahoo is, to a large degree, a legacy company. All its core offerings -- search, e-mail, forums, news and IM -- have been around for years. Why spend $44 billion to buy the past when you could invest that money in inventing the future?

This deal seems like a knee-jerk reaction to the Google threat. Instead of building technologies that can outpace Google, Microsoft is hoping to buy a company that has proven it can't keep pace. From a purely business standpoint, maybe the Yahoo audience is worth that kind of cash -- but this isn't a deal based on technical innovation. What do you think? Write me at dbarney@redmondmag.com.

Posted by Doug Barney on 02/04/2008 at 1:15 PM


Featured

  • Windows 10 Mobile To Fall Out of Support in December

    Microsoft will end support for the Windows 10 Mobile operating system on Dec. 10, 2019, according to an announcement.

  • Get More Out of Your Outlook Inbox with TakeNote

    Brien comes across a handy, but imperfect, feature in Outlook that lets you annotate specific e-mails. Its provenance is something of a mystery, though.

  • Microsoft Resumes Rerelease of Windows 10 Version 1809

    Microsoft on Wednesday once more resumed its general rollout of the Windows 10 version 1809 upgrade, also known as the "October 2018 Update."

  • Microsoft Ups Its Windows 10 App Compatibility Assurances

    Microsoft gave assurances this week that organizations adopting Windows 10 likely won't face application compatibility issues.

comments powered by Disqus
Most   Popular

Office 365 Watch

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.