Sunday, 18 May 2008


Yahoo!, Microsoft and Google seem to be cavorting around the internet playground at the moment like a set of techno bullies. One minute dreaded enemies, the next bed buddies discussing business plans.

As I read last week about the collapse of the deal that would have seen Microsoft buy Yahoo! for an excessively large amount of cash in order to pull its eye level closer to Google in the ever more profitable internet/online advertising world, I wondered how this would affect the long term outlook in this particular sector.

Yahoo! who I have previously written about with their semantic search research and adoption, seem a little lost in this "big boys" battle between Google and Microsoft. Or is that the way they want it to seem? Yahoo! had surprisingly only just recently approached Google as to the possibility of them taking care of their internet advertising, which was a strange request as this seemed their area of greatest contrition?

Anyway, back to the deal of the decade, Yahoo! to be bought by Microsoft, or not as the case currently seems. So what went on, Microsoft went in high, Yahoo! rubbed their hands, well the shareholders did, so they asked for more. After Microsoft had already lost face by going in high, I expected them to meet somewhere in the middle, but instead Microsoft just backed away. Leaving Yahoo! where they were but with a lower share price and Microsoft still having MSN as their search engine flag ship. Google must be chuckling away gleefully by themselves!

But, there has been much criticism made of Yahoo! poor business dealings in not accepting the already good offer from Microsoft and the CEO Wang (founding owner) now is under pressure from his shareholders, it seems, to go. Personally I see this as an interesting turn in events, and perhaps a hope that companies are not all driven by profit focussed share holder boards, although we'll have to wait and see how long Wang holds out. I'm tired of just seeing these global giants just celebrating a massive increase in profits, surely when all of these guys set out they had better objectives than that? Sure they wanted to make a buck, but perhaps they had more interesting goals as well? Or maybe I am just a romantic lost in a world of sales men.

Anyway, when I started writing this entry it was new news, now however it isn't so I am going to draw a close to this particular thought pattern and move on . . . laters . . .