JamieG Analysis

As the MicroHoo sideshow continues, it is hard not to have something to say about the biggest hostile takeover in IT/Internet history. In a previous post I noted how Microsoft has won either way. The Dam-Buster bomb has gone off and hit its target. We are just waiting for the dame that is Yahoo to slowly crack and eventually come tumbling down.

Evidence of this is the departure of a number of board members. Imagine what is happening behind closed doors. The board actions are also terribly irresponsible. They could be in big trouble in the future. Their decisions are greatly reducing the company worth while at the same time rejecting a very generous offer. Their duty as board members is to protect the investors. Their actions go completely against this. I can see class actions going for directors on a personal level once the SH%# hits the fan, so to speak.

Microsoft, I feel, is very genuine about purchasing Yahoo. Not because of the people or technology. Microsoft has great people and great technology. It’s how they decide to use it that matters. These “Stated Reasons” are nothing but hot air. Microsoft is interested in yahoo’s share of the market especially in search, plus the eyeballs. Otherwise, I see no synergy on this move apart from wiping out some great open source projects. (Zimbra, the exchange killer for one).

The objective here is to bring the dominant players from 3 down to 2. Google and Microsoft. But at the same time, this gaping hole left behind by yahoo. It will be filled up with Google if yahoo is just left to wilt and die slowly. Microsoft do need to purchase Yahoo, but as we can see they are in no hurry.

The attempt by the Yahoo board to kill the deal, in the end is playing into Microsoft hands. As, Microsoft has started purchasing stock at rock bottom prices. This will go on for as long as it takes the Yahoo board to regain sanity. Microsoft laughs all the way to the bank.

I have never been a fan of Microsoft, but the inevitable is the inevitable, even if it is the last thing in the world that we want to happen. (Which this is for me.)

Sa la vi.