John

MicroHoo’s Just Ridiculous.

In News on February 12, 2008 at 10:55 am

microhoo.jpg

(Pic from Australian IT)

Get sick, take on a project, and celebrate Chinese New Year–that’s a recipe for abandoning the blog for a week. Not that these are excuses for me being lazier as I really have been busy but… oh screw this. I’m sounding as deluded as Rafa Benitez is for blaming the owners for Liverpoop’s league position.

Anyways, a tonne of news has been happening, including the Micro-hoo/Yacrosoft deal, which is increasingly unlikely to happen because of the Anti-Trust European laws and Jerry Yang’s rebuff of Microsoft’s approach (read his e-mail to Yahoo!’s employees here). Plus, it’s a combination of two losers to challenge the top dog–two wrongs (or two inferior companies in this case) don’t necessarily make a right.

Won’t go much into detail about it, as everyone’s got something to say about this deal–it’s good, it’s bad, it’s disastrous, it’s just hype, blah blah blah. Me? I think this deal stinks. But I’m not qualified to critic this issue, but I’ll leave it to Dvorak in his PC Mag Column:

Yahoo!, which is indeed a direct competitor to Google, probably should be looking at what Google does and reacting appropriately. Why Microsoft got involved in this advertising/publishing sales game is somewhat mystifying. It’s as if the company got bored with what it did best.

The way I see it is that Microsoft is not competitive in this area, and Yahoo! is competitive but losing. I’m reminded of Microsoft’s starting the MSN service as a competitor to AOL. It was crazy and totally off-topic. The company blew money that belonged in its shareholders’ pockets. Sound familiar?

Meanwhile, if Yahoo! accepts this deal, it’s the same as giving up and deciding to take the money and run. The principals of the company have plenty of capital and should reevaluate why they started Yahoo! in the first place. I’m certain that it wasn’t so they could be bought by Microsoft and destroyed in the process. Then again, I’m sure there are a few less-moneyed individuals in the company (and on the board) who are looking to cash out rather than work for a living.

It’s a pathetic situation, plain and simple.

In other words, both Yahoo! and Microsoft are better off just sticking to their core competencies instead of chasing Google. Make a better search engine. Do a better OS platform. Jeez.

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