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@Roger #
Posted Monday 25th February 2008 23:44 GMT
But what will MS really win?
An acquisition works when both parties emerge stronger (the whole is greater than the sum of its parts). Overused words like synergy come to mind.
MS and acquisitions just don't work together. Probably less than 10% of MS acquisitions have been fruitful. hotmail etc etc.
MS have failed dismally in any attempts to diversify. Zune anyone? The only diversification that seems to be working (slightly) is Xbox and Halo, but those are hardly making serious money (last time I looked they were making losses).
Both Yahoo and MS are falling behind in the value-added webby space (search, webmail,...) Two sinking ships might float a little longer if tied together but they're still sinking. There is no lock-in to seach, but there is a bit to groups and email.
Neither MS nor Yahoo have done annything interesting in the last 2 years.
MS + Yahoo are hardly stronger together. You'll see a momentary up-tick in their search numbers etc but the downward trend will continue.
This deal could not be better for Google than if Google were doing the matchmaking themselves. Sure Google must put in a few rumbles, but that's just to keep up the charade.
Ballmer is completely Google obsessed and that is the reason he'll do anything to try take on Google: buy Yahoo, buy Danger. In both cases he does not seem to have a plan that takes these acquistions to a useful place. All he sees is that they might be weapons in the Googlefight.
Perhaps MS should rather put their energy into making Vista good.
MS is huge and have huge momentum so they won't keel over today or tomorrow. It will take them a lot longer. In 10 years I expect to see MS on the scrap heap with Digital, NCR, ICL, Novell and other once great names.
