May 05, 2007

Microsoft to take over Yahoo?? ....Nah....No way!

This is been the talk of the towns...all over the world - Microsoft to take over Yahoo Inc.
Wow! That is indeed something that will raise a trillion eyebrows. This has indeed brought a lot of smiles in the faces of several MS and YAHOO stock holders....not for long!

Yes, this has been one of the most sizzling stories of recent times...and the 'would have been' the monstrous deals of recent times and of course in the history of Microsoft. Yes, I did say 'would have been'. In my opinion, this is certainly not the right thing to happen (and most likely will not materialize). I have three good reasons to support my opinion...
  1. The first and foremost reason being - A Profile Mismatch
    • MS being totally into the product space (starting from an Operating System space)
    • MS later branched into hosted application space and the portal space
    • MS has not been into the middleware space - though having tried to do something here by some acquisitions (like that of Groove Networks)
    • Yahoo has predominantly been in the Search business
    • Yahoo has spread its offerings into the Internet world - collaboration space
    • Yahoo also went into signing a deal with the Big Blue and rolled out the IBM Omnifind Yahoo! Edition, which was a move to get a hold in the enterprise search engine space
  2. The second reason is that Microsoft acquiring Yahoo will be construed as Microsoft accepting a defeat to Google - not withstanding competetion and going in for an acquisition due to lack of capabilities to come up with an in-house solution!
  3. The third reason I would see from a business impact standpoint is that - The deal, if it happens, will be too humongous a deal, to the business case in hand (that I can think of)
Currently, as per current rankings of Search Engines, Google tops the charts with Yahoo following second and Microsoft falling third.

It was not long ago (in 2005) that Bill Gates treated Google and Yahoo as new-kids-in-the-block. He even said that Google search API's were not as good as Microsoft's!!!

"With Google, there are rumors about them being interested in that services piece, but they really haven't done that much. Our search API is way better than their search API
- Bill Gates, at Microsoft Professional Developer Conference in 2005

This is always going to be an interesting thing - The Microsoft - Google war!

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