Spurned once, Northwest-based software behemoth again looks to woo Sunnyvale Yahoos

Yahoo stock is up more than 15 percent today after a New York Post report that Microsoft has formally renewed its effort to take over the Sunnyvale Internet giant at a price tag of $50 billion or more.

Many see the proposed takeover as a reaction by the Redmond, Wash. software sovereign to ever-increasing concerns about keeping up with the Googles, particularly after losing a recent bidding battle for online advertising specialist DoubleClick. With Google developing Internet-based software squarely challenging the dominance of Microsoft’s Office Suite, some think Microsoft has little choice but to move quickly and authoritatively.

Responding to such speculation last May, Yahoo CEO Terry Semel told the Mercury News: “My impartial advice to Microsoft is that you have no chance,” adding that it would not be smart to sell “your right arm while keeping your left.” Yahoo is thus far keeping quiet about today’s report.

Assuming some kind of agreement is reached, it’s all but certain to face heavy antitrust scrutiny. As blogger Vindu Goel points out, the critical question for regulators will be whether the government should allow a company with a monopoly in one field of technology to boost its position to fight another company with a growing monopoly in another field.


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  • Ed

    Yet another example of M$FT buying, stealing or appropriating someone else’s ideas. For all the money and supposed talent in Redmond, they sure don’t seem to be able to come up with much on their own (or even fix what they already have, for that matter). Innovative? HAH!

    …and if M$ST does buy Yahoo! that will be the last time I visit yahoo.com.

  • Geomguy

    What Yahoo lacks is people on the front lines, for example in their news page, which has to be a big draw for Yahoo they discontinued the users forum, instead of creating a forum off news that users could use… I don’t think they know how to spell community… so they bought flickr… like MS they buy what they cannot create (lack of talent?) even after owning flickr for months there’s still no community at yahoo… there’s no central focus for a community…

    Back to yahoo news… about the time they axed the news forums the also dicontinued “ad feedback” – check it out, after 6 months you still get the same message.

    I can sum up for shareholders in 3 words the main problem with yahoo management (top down) “Out Of Touch”

  • Geomguy II

    To be fair to Yahoo as a search engine I have this critique of Google…

    I don’t know who conceived of google’s new indexing but it is weird…. here’s an example. Say I buy an ad on google ad words for “xyc pens.” The ad runs on a number of websites… these ads run on say 10 different websites based on my keywords or site target… a few days later I do a google’s search for “xyc pens” and in the search results are the web pages that the ads had run on… of course the ads were the only thing on that web page that mentioned “xyc pens” and the ads were only on those web pages temporarily so if I click on the search result link and go to the web page I see nothing about “xyc pens” unless the ad coincidentally happened to run again….

    What a wacky way to index… Now when I search for “xyc pens” on Yahoo! what do I get? I get “xyc pens” website listed first and maybe one maybe 5 or 10 web pages from the site… I get none of the cr*p that I get on the google’s search.

    Which search engine produces better results?
    For me it’s not google.

    Has no one else noticed this?

  • Rick

    For all the competition between Yahoo! and Google, culturally I think the two sets of employees would get along okay. So if Yahoo! is feeling stockholder heat to answer a bid, why not invite a counter-bid from Google? If it goes through, they can keep their separate sites and interface styles, but share good and bad experiences of what works and what doesn’t. That’s besides the fun of seriously critiquing each other’s site.