|Like a daily soap opera, the Microsoft/Yahoo saga continues to spin. On Friday we got word that "something big was going down" between Yahoo and Microsoft. A few minutes later we searched the blogs only to find stories such as this one from TechCrunch suggesting that Microsoft (MSFT) was considering retracting their bid for Yahoo (YHOO). In an obvious move to force Yahoo's hand, this was a predictable move. Rather obvious actually.
Much of this soap opera has been taking place through the Media and as TechCrunch reports through the WSJ. Microsoft, as per the usual, is trying to strong-arm their way with its bid to acquire a company. If only they put this amount of effort into growing their own search product. I for one do not want to the deal to go through. The search world needs a Google, needs a Yahoo, needs ASK and I guess needs Microsoft's Live Search. While many are expecting an announcement in the next couple of weeks (especially as Yahoo is getting ready to announce their Q1 numbers) any actual deal between the deal will take months to finalize.
Furthermore the deal still undervalues the World's most visited online destination in Yahoo. While Microsoft states that they will not up their bid, the fact is that if they want to acquire Yahoo, they're probably going to have to. The Yahoo team including shareholders need tp stand pat and realize the true value of the company. Forget listening to analysts, strive to understand the true value, potential and opportunities that Yahoo has.
If the deal does go through, what can we expect from Microsoft in say 12-18 months? Are they now going to be the Google Killer that they are trying so hard to become? Short answer: NO, not a chance. Unless they step it up with their efforts and innovations towards their search product. Acquiring Yahoo boosts their market share, but the fact of the matter is they will still be a distant second to Google.
Labels: Microsoft Yahoo merger