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Yahoo may align with Google against Microsoft's takeover proposal
The controversy behind the buyout partially stems from the fear that such a move would destroy Google and all other competitors in the long run. Microsoft used a similar method to get Windows users to use Internet explorer instead of Netscape, but Google's destruction may not be Microsoft's intent. Disagreeing with critics, Microsoft says the takeover would create a solid second-place competitor in the Internet search market.
Though we can't predict the future, it's clear Yahoo won't be alone in the future. The question now is: what will Yahoo's future name be? Yahoogle or Microshoo?
Comments
12
Subscribe to commentsToddFeb 5th 2008 9:42AM
In no way am I an investment expert, but isn't the "poison pill" of billions and billions in cash what keep Apple safe from hostile take overs? If Schmidt gave or infused a part of Yahoo with cash would that work? Finance people, chime in.
Oh yeah and check out this video on the subject:
http://www.youtube.com/watch?v=x9BosxTWZE4
MattFeb 5th 2008 10:15AM
Yahoo doesn't need a third party to adopt a 'poison pill'. The board just needs to float a whole whack of new shares. Google seems to be toying with the possibility of being a White Knight in the deal. Personally, I hope Google does buy Yahoo.
Christina WarrenFeb 5th 2008 12:31PM
Antitrust laws would prevent Google from outright acquiring a significant portion of Yahoo! stock. Google is the market leader by a HUGE margin. Now, Google could try to offer some advice to the board to float options or do what they can to avoid a buyout, but the company can't start buying massive amounts of Yahoo! stock.
Really, I see this as just a ploy to get the share price up. As a Yahoo! shareholder (I know, I KNOW -- not by choice, I got some free shares about 10 years ago and my mom (I was a minor at the time) refused to let me sell when they were at $400, so I've just kept it around), that suits me just fine - but Microsoft seems serious about this buyout. Their bear-hug letter/conference was pretty friendly, that doesn't mean they can't get nasty real quick.
dsfsdfsdfdsfFeb 5th 2008 10:34AM
What exactly are you referring to when you say "Microsoft used a similar method to get Windows users to use Internet explorer instead of Netscape" ?
Microsoft just bought a browser that was hardly used at all and turned it into the first version of IE. Not quite the same.
ToddFeb 5th 2008 10:59AM
Ummmm no, they made IE the default browser inside Windows and did not let the user switch.
"Those who do not learn from history are doomed to repeat it."
dssdsdfsdfFeb 5th 2008 12:26PM
@Todd: That has even less parallels to Microsoft buying Yahoo...
Christina WarrenFeb 5th 2008 12:42PM
Yeah, I really don't see the Yahoo!/Netscape connection AT ALL. Microsoft licensed code from Spyglass (Mosaic), Netscape was also largely based on Mosaic. Microsoft didn't buy Spyglass or put them out of business (some other company bought them in 2000 and they never made any intentions of releasing a stand-alone web browsing product).
All debates over the ethics/legalities of the strong-armed tactics of IE being bundled aside (and I still contend that a major, MAJOR reason Netscape faltered was that IE 3.5, the big turning point, was a better browser, period, than Netscape. Netscape Communicator (Netscape 4?) was awful, let's not let nostalgia make us look back fondly on a crappy product. I remember distinctly switching from Netscape Gold to IE 3.5 (and I PAID $60 or $70 for Netscape Gold), not because it was free, but because it was better.), I really don't see the parallels between buying Yahoo! and Browser Wars 1.0.
NickFeb 5th 2008 11:51AM
If Microsoft acquires Yahoo!, there will at least be competition for search. A Google-Yahoo! alliance would teach users the true meaning of the word "monopoly". Even though people think of google as a benevolent force- they are even more profit driven than Microsoft- just ask AdSense users who have no choice but to accept Google's constant increase of fees.
michaelFeb 5th 2008 11:52AM
guess what people, Microsoft never "didn't give you the option to switch"...can you install programs on windows, right, yes you can, you install new browsers on windows, right, yes you can (personally, i'm typing this on Firefox...i rarely ever use IE) and look at that, i "switched" oh my god, Microsoft puts its own products into its own operating system, WHAT...they don't put competitors products in...dammit, i need to call Nissan and tell them i want a hemi in my versa! right now!!! i also want the civic branding on it too and, while they are at it...maybe the seats from the Audi TT but i want this from the factory, and i don't want to pay extra!...stupid people don't know what the hell they are talking about, getting mad at a company for making its shareholders money
james 42Feb 5th 2008 1:09PM
You don't remember the browser wars too clearly do you? Or the lawsuits the followed?
The problem was not that MS was a monopoly, monopolies are not illegal. What is illegal is to use you monopoly position in one area to unfairly gain advantage in another. And by "unfairly" I mean threatening to raise the price of Windows to any computer company that dared to install another browser on the computers they sold.
campbellwatermanFeb 6th 2008 10:09AM
If Yahoo disappears as an independent company then the Microsoft/Google duo monopoly will be strengthened to our disadvantage.It·s time for everyone to spread their net activities out and use the smaller competitors where possible.
Robert HeadleyFeb 6th 2008 6:51PM
Actually, Microsoft may have forced spyglass out of business. Because when they licensed mosaic, they released their browser for free, while Mosaic was still commercial software.
Most likely, Google will buy a minor share in yahoo, say 5% just like they did with AOL.
Yahoo goes back to Google based search results and who knows, maybe technology sharing on the advertising spectrum.