Microsoft to Yahoo! – Ummm….Nevermind
The New York Times is reporting that Microsoft has withdrawn its bid for Yahoo!
Just as well. Microsoft has poured billions into its webportal and search tools only to be a floundering third. In typical Microsoft fashion, it determined it would merely buy what it cannot do on its own. What a boneheaded idea. The almost total redundancy in functions between the two companies ensured there would be no complementary effect upon merger. Without synergy, it would merely be a cost cutting exercise where Microsoft would abuse and abandon the technology it acquired. Can anyone say HP/Compaq?
It is good the deal did not go through – for everyone, especially the consumer.
The HP/Compaq merger is probably the best analogy to the Microsoft/Yahoo proposal. There was a clash of corporate cultures that never meshed; the HP founders hated the idea (internal dissension just like MS), and an incredible overlap on product lines. The end result was Carley Fiorina kicked out unceremoniously. Lets face it, the Compaq brand is still around – does anyone have any idea what the difference is between a Compaq and HP laptop?! No.
Now both MS and Yahoo are free to run their business rather than plan for a “big bang” merger of two large companies.
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