NYTimes reports Microsoft & Yahoo Merger talks resuming - Yahoo shares rocket 18%


The New York Times story before trading started this morning of renewed merger talks between Microsoft and Yahoo has put Yahoo's stock up around 17% at time of writing.

There is of course a flurry of speculation, but so far no specific comment has come from either Yahoo or Microsoft. The main driver for this move is thought to be Microsoft's growing concern about losing ground to Google, with its recent acquisition of Double Click, which both Yahoo and Microsoft had expressed interest in.

But many commentators are suggesting that a marriage of Yahoo & Microsoft, despite Yahoo's new search software, will be a bad move, as both are too bureaucratic and slow moving to compete with the likes of the agile and lean Google. Matthew Ingram in Toronto compares it to tying two icebergs together, and Techmeme.com is an excellent starting point for following the story.

There is an unconfirmed story circulating from the West coast this morning that Google may be thinking of moving on Yahoo in a hostile bid, and this may be forcing Microsoft's hand - a similar theory is found here at makeyougohmm.com where the advice is to watch out for eBay and Yahoo joining forces as a more natural fit.

What's your take on this, Ecademy members?

Thomas Power
Chairman, Ecademy
+447976438285

Bob Apollo

bobapollo1-102570

NYTimes reports Microsoft & Yahoo Merger talks resuming - Yahoo

To put a slightly different twist on the "Tying two bricks together doesn't make a life-raft" metaphor, "stapling two old paradigms together doesn't turn them into a new one". Mergers of this size almost never work because of cultural inertia. I don't think companies can buy themselves out of this sort of trouble. Honestly, it would be easier to reinvent themselves from within than to make this work ... a close to impossible task by itself. Regards Bob Apollo Inflexion-Point "what's holding you back?"

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Thomas Power

thomas-power-8

The Battle of the Portals

An old story being re-cycled. Thomas Power Chairman, Ecademy +447976438285

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Nick Braak

nickbraak

NYTimes reports Microsoft & Yahoo Merger talks resuming - Yahoo

I'd say my take was rather good. I too see it as two large objects lashing themselves togther. Problem is that won't make 'em float any better. Anyhow, as some of the hot-shots have stated this is also about taking advantage of the market at its peak. After the hard landing later this year cost-cutting will be the order of the day. And nothing justifies a good dose of slashing and burning better than a merger. Nick Braak Forward-looking Internet Strategist and Commentator "Prediction is very difficult, especially about the future." - Niels Bohr

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