Microsoft wants to buy Yahoo… I don’t even know where to begin. I could go on for hours. This merger would be a disaster of epic proportions and I would get to see it first hand from start to finish. I guess to express my viewpoint you need to understand my thoughts on each company individually.
First Microsoft – Microsoft is a run away success story with one chapter left. It was exciting for years, but they have CLEARLY lost their way. They are trying to do so much at the same time that they fail miserably across the board. Vista is a pile of garbage, MSN is technically inferior to both Yahoo and Google and is marketed so poorly that I can’t see anything I like about the direction its going. However, the one main thing that really defines Microsoft’s decline is that they no longer care about the small individual customer and ALL their offerings showcase this ignorance. For them its all about the dollar and nothing about whats best for the user. You can’t win going forward with leaders that have that attitude. So in my mind they have already lost, we all just have to sit around and continue to watch it happen for the next 20 years (Maybe 10 if we are lucky).
Next Yahoo – Yahoo is a company I respect and admire. Yahoo’s culture is one where they actually care about the client and the customer experience. They try and treat their employees with respect and in turn those employees treat users of their vast internet resources with the same level of courtesy they are shown within their own company. Yahoo’s slow but inevitable decline comes because their product is technically inferior to what Google has to offer. They have struggled mightily to change that perception, but in the end unless something drastic happens their market share will continue to diminish quarter over quarter.
The Merger – So Microsoft a company that can’t get its ducks in a row wants twice as many ducks. Lets get serious for a minute. Microsoft CAN’T win because their viewpoint is skewed from the want the customer wants to what it wants. Microsoft believes whole heartily that the ONLY reason that it isn’t where Google is now is because they were late to the game. They sincerely believe that if they started focusing on search a few years earlier that they would be where Google is now. Thats the problem. They don’t understand that when users truly have choice that Microsoft products rarely win. Microsoft does well because of the closed nature of its business.
In five years time if Microsoft were to buy Yahoo they would have piddled away what market share Yahoo still has and only have a 45 billion dollar hole in their pocket to show for it. Heck, if they want to do it go for it because I will be the first one in line to short Microsoft stock!!
Matt Heaton / President Bluehost.com / Hostmonster.com