Once Again, Talk Of Wedding Bells For Microsoft And Yahoo

from the shotgun-marriage dept

Fri, May 4th 2007 8:08am — Joseph Weisenthal

Apparently it's the season to rehash old M&A rumors. Yesterday, an analyst breathed new life into the idea that CNET could be on the auction block, something that's been talked about for years, with nothing to show for it. Today, the New York Post is reporting that Microsoft is close to making a bid for Yahoo, or so its "sources" claim. This same rumor popped up almost exactly a year ago, as many felt that the companies had to do some sort of deal to battle back against the Google juggernaut. Since then, neither company has made much progress against Google. The rumor can't be dismissed entirely, in part because the New York Post has a surprisingly good track record on these kinds of things, and it's possible that Microsoft is growing increasingly desperate, following its failure to win DoubleClick. But even if the companies do a deal, it's hard to see how that would solve either of their problems, since it ultimately comes down to products and consumer value, which is at the core of Google's success. Update: And just like that, it's being reported that all discussions about a deal are now off. Don't worry, it can't be too long before these rumors bubble up again.

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15 Comments

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Andy C, 4 May 2007 @ 9:19am

Google ftw
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RandomThoughts, 4 May 2007 @ 9:21am

Microsoft missed in other acquisitions and has to do something, they don’t have a choice. Microsoft / Yahoo does make a lot of sense. Microsoft just bought Screentonic, which is a mobile ad platform. Microsoft needs to improve their advertising platform, when you look at the Comcast / Yahoo deal, merging Microsoft with Yahoo gives Microsoft technology, infrastructure, contacts with advertising agencies (though Yahoo) and more. They both could really do well.
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Matt, 4 May 2007 @ 10:06am

new name...
I'm confused... will it be Microhoo or Yasoft now???

:)
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- Charles Griswold, 4 May 2007 @ 12:23pm
  
  Re: new name...
  I'm confused... will it be Microhoo or Yasoft now???
  
  I'm still waiting for Federal Express and UPS to merge into Fed-UP.
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Faceless Minion, 4 May 2007 @ 10:21am

Hehehe. As nice as both of those sound, Yahoo will be swallowed into the leviathan that is Macrohard.

Of course, that is assuming that this actually ever happens. Really, I don't see why Micro would -want- to buy an entity that is more aging, decrepit, and corrupt then they are...
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James, 4 May 2007 @ 10:43am

Sounds like..
...#2 is one of these ppl who bought Yahoo's stock after it jumped 18% this morning.

BS... I'll believe Microsoft is buying Yahoo when I see it. Google is succeeding in areas its good at, I'm happy for them ;-)
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- Anonymous Coward, 1 Feb 2008 @ 11:32pm
  
  Re: Sounds like..
  NO BS! Believe it! Microsoft has made a tender offer for Yahoo!
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RandomThoughts, 4 May 2007 @ 10:58am

James, I don't own stock in Yahoo and never have. It makes sense from a corporate perspective. Balmer has admitted that they are weak in the web space and has missed out on Doubleclick. Microsoft has to do something, and Yahoo does make sense.

Why do you think Microsoft bought Screentonic? They know they need to get into advertising in a stronger way.

M&A's are typically done out of weakness. Don't you think Microsoft qualifies?
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James, 4 May 2007 @ 11:43am

Simple answer? No.
No it doesn't make sense. Yes, Microsoft does/has bought other companies in lieu of growing their own products (achieved by purposes of acquisition).

While I have no say in the situation, I do not personally feel this is an area where Microsoft will choose to do that. It seems to me, the cost to do so does not match the benefit recieved.

And yes, I'm well aware of the rediculous amounts paid for MySpace, YouTube and offered for FaceBook.

For the record... I own stock in neither company.
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Bill Gates, 4 May 2007 @ 12:22pm

Yeech
God I hope not. I really, really hope not. Microsoft can't come up with an original idea to save it's soul. It's corporate culture is riddled with PHD-MBA-based highly political group think, which inherently goes against the ideology of collaboration and creativity, the cornerstones of Web 2.0.

Any good idea has to be acquired because internally, they can't do it themself.
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arrg, 4 May 2007 @ 12:40pm

prediction
MS buys yahoo, anything good that is yahoo is destroyed by bad management and bureaucracy within MS. People with yahoo mail change over to gmail. major layoffs of yahoo employees. nothing is produced from the merger and the end result is a loss of a company, Google grows stronger...
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pastci, 4 May 2007 @ 1:12pm

I don't see how a company that made $5 billion last quarter can really be called "desperate".
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Anonymous Coward, 4 May 2007 @ 1:26pm

Microsoft doesn't need Yahoo. Yahoo is shit, they can't give Microsoft anything. Yahoo needs Microsoft. Google beat that stupid singing hick search engine, too bad.
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Kathleen Criddle, 4 May 2007 @ 4:44pm

This may be too little to late for Microsoft
This may be too little to late for Microsoft. Microsoft always seems to be following the lead of other companies. Combining MSN and Yahoo will stager their competition and Google will ultimately benefit. They should both work on building their e-mail market and also integrating more useful sales venues.
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