John

Do No Evil? Google Employs Quattrone as Advisor on Takeover Saga.

In News, Uncategorized on April 13, 2008 at 6:12 am

The blog hasn’t been updated for a while, so expect me to post up a few exciting things that have happened over the past week. There’s been a lot of dugg and random stuff to report, so I’ll kick start with the latest news in the Yahoo-Microsoft takeover, where Google recently took on Frank Quattrone as an adviser on the potential merger, or *ahem*: takeover battle.

This from the Guardian:

Google has turned to one of the technology world’s most controversial figures – once arrested and put on trial – for advice in the takeover battle between Microsoft and Yahoo.

Eric Schmidt, Google chief executive, has reportedly called in the newly formed investment group Qatalyst – headed by Silicon Valley banker Frank Quattrone. Quattrone, who has long associations with Google, is best known as the high-profile investment banker with Credit Suisse who was involved in some of the biggest stockmarket flotations of the 1990s internet boom – including Amazon and Netscape. He has been dogged by controversy amid allegations that he was involved in boosting shares of companies he was advising.

He was arrested in 2003 for obstruction of justice and was eventually convicted and sentenced to 18 months in prison. That conviction was overturned after an appeal and last year the final charges against him were dropped on condition that he does not break the law for a year.

His company, which was formed last month, will provide guidance to Google on the prospects for Microsoft’s $42bn (£21bn) bid to buy Yahoo. With Yahoo resisting the approach, the deal is becoming increasingly complex.

According to reports this week, the battle could even set the internet’s biggest companies against one another – with Microsoft and News Corp potentially joining forces to take on an alliance of Yahoo, Google and AOL.

Seems to me that the good ol’ days of Do No Evil is long gone now. Machiavellian tactics is the order of the day. Personally, I still don’t think this takeover bid will do anyone good, except for Google–what does Microsoft wish to achieve in such a hostile move?

These two were supposed to work against a common competitor, Google, but it’s more likely that if they do merge, they’ll be busy bickering amongst themselves first–they’ll be their own worse enemy. And in such a vitriolic atmosphere, I won’t be surprised if the brains behind Yahoo! leave because of the clashing corporate cultures–a problem highlighted many times before.

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