Microhoo: Breaking Up Is Hard to Do
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News Commentary. Rumors that Microsoft wants to break up Yahoo make sense to me. Steveo won't let go. |
Today, the Wall Street Journal reported that Microsoft has sought out at least News Corp. and Time Warner as partners for picking away pieces of Yahoo—break it up. Microsoft CEO Steve Ballmer apparently still wants Yahoo's search business. If Yahoo won't willingly give it up, Microsoft will just take it.
Such a tactic isn't the least bit far-fetched. Yahoo's board is choking on the company's free-falling stock price, and billionaire Carl Icahn is waging a proxy fight to oust at least some board members. Meanwhile, Yahoo talent is leaping into the icy waters of job uncertainty rather than stay on the listing ship.
Yeah, Yahoo could be picked apart, with Microsoft getting the choice meat—search. I'm mixing metaphors, but there are so many sophomoric, metaphoric angles to this plot, I simply can't contain my enthusiasm. The whole "breaking up" concept is loaded with fun, sophomoric interpretations:
- The jilted lover syndrome, where Microsoft courted Yahoo, which rebuffed its advances. Now, it's time for some sweet revenge; if I can't have you nobody can. I'll destroy you. I'm gonna break you up, baby.
- "Hey hey, you you, I want to be your girlfriend." Yahoo fell into Google's loving arms. That's a relationship Microsoft can't stand not to break up.
- What's good enough for you isn't good enough for me. Microsoft fought the Justice Department over 2000 sanctions that demanded the company breakup. Microsoft wouldn't split into separate companies but it has no qualms about breaking up Yahoo. Oh, the irony is thick.
The Journal positioned the talks with News Corp. and Time Warner as "preliminary and unlikely to result in a deal with Yahoo." Maybe, but the talks themselves are the point. Microsoft hasn't given up on getting something from Yahoo. The goal is no longer is the whole Yahoo but the piece that matters most to Microsoft—search.
I want to editorialize that Journal statement: "Unlikely to result in a deal with Yahoo" now. If Carl seizes control of Yahoo's board, there may be a sudden willingness for any deal and more interest from third parties to join in the pickings.
What I want to know: Why isn't Microsoft talking to Amazon.com? I stand by my long-ago stated opinion that an Amazon-Yahoo match-up looks really good. It could be a whole lot better if Amazon didn't have to assume all that search mucky muck; just outsource elsewhere.
But Amazoo could create other problems Microsoft wouldn't want to deal with later. Microsoft is already fixing to compete with Amazon's hosted data center services, which Yahoo could greatly extend. Amazoo could also tie many existing Yahoo services, such as Messenger, Shopping or even Flickr, to its retail engine.
Whomever the partners, if any, Microsoft isn't done trying to wrestle search from Yahoo. If that means a Yahoo corpse to get search, certainly. The break up plan adds more meaning to the saying, "Over my dead body."
Related Posts:
- With or Without Yahoo, Microsoft Watch, June 25, 2008
- Don't Yell 'Yahoo' So Fast, Microsoft Watch, June 25, 2008
- Microsoft Adds Insult to Injury, Microsoft Watch, June 16, 2008
- Google-Yahoo Smacks Microsoft, Microsoft Watch, June 12, 2008
- Icahn Talk, Why Can't Microhoo?, Microsoft Watch, June 12, 2008
- Google Search Share Surges, Live Languishes, Microsoft Watch, May 22, 2008
- Live Search Cashes In on Cashback, Microsoft Watch, May 21, 2008
- Microsoft's Yahoo Plans Advance>>08, Microsoft Watch, May 19, 2008
- Microsoft and the Yahoo Lobotomy, Microsoft Watch, May 19, 2008
- Steve Ballmer and the Microsoftdom of Yahoo, Microsoft Watch, May 18, 2008
- Icahn Yahoo Better than You, Microsoft Watch, May 15, 2008
- Yahoo: Between a Rock and a Hard Place, Microsoft Watch, May 8, 2008
- Why Didn't Microsoft Yell 'Yahoo'?, Microsoft Watch, May 5, 2008
- Will He Stay or Will He Go?, Microsoft Watch, May 5, 2008
- The Microsoft-Yahoo Blame Game, Microsoft Watch, May 3, 2008
- What Steve Said to Jerry, Microsoft Watch, May 3, 2008
- Microsoft Boo-Hoos Yahoo, Microsoft Watch, May 3, 2008
- Open Letter to Steve Ballmer, Microsoft Watch, May 1, 2008
Comments (8)
Steve-O = IMHO, it would bring an EXPECTED level of professionalism to this site... if nicknames weren't used. Same goes for teh ballmer meter you have. Its just not professional.
Posted by u | July 2, 2008 7:12 PM
Wooop. Somebody sounds peeved and it sounds like peevishness down to the corporate quick.
Posted by portuno | July 2, 2008 9:57 PM
Joe wrote: "The breakup plan adds more meaning to saying, 'Over my dead body.'"
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And that, ladies and gentlemen, is the lasting legacy of Bill Gates and his dream to control personal computing. And let's not forget Steve ballmer too, but he's still on board at Micro$oft. We can expect more rotten behavior as long as Steve's there.
Posted by Maddog | July 2, 2008 10:53 PM
Joe Wilcox writes; "Yeah, Yahoo could be picked apart, with Microsoft getting the choice meat—search. I'm mixing metaphors, but there are so many sophomoric, metaphoric angles to this plot I simply can't contain my enthusiasm."
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Enthusiasm for Microsoft is not something I would expect from someone who writes for "MS Watch." To be fair, I think Joe is one of the best bloggers out there, covering MS in general, and in general, tries to be fair. However, enthusiasm, or being an "advocate," which he tried before, for all things Microsoft, is not like taking an watchful eye on what is happening with Microsoft and their products. That is more in line with what one would expect from Andre and his ink.
There are so many, many bought and paid for blogs, or blogs that are influenced by Microsoft advertising out there, ZDNET comes instantly to mind as one candidate. Generally not worth reading. Sad when the most nonpartisan MS news out there, comes from SJVN these days. I would hate to see this blog further tilt more to the ways of ZDNET and MS.
Posted by chips | July 2, 2008 11:41 PM
Interesting comment. Honestly, I used enjoy Microsoft Watch much more in the past where you a good independent view on Microsoft and I think that Mary-Jo has continued with an excellent blog on Zdnet. Before Joe joing eweek, I enjoyed his blog as an analyst. However, now a lot his work seems to be overtly negative. It is seems weird to me that it possible to write both the microsoft and apple watch blogs.As SJVN, he never lets reality in the way of good story, especially if it can promote his platform of choice. Sometimes this blog can read like a slashdot comment thread and really I can't see what value that has.
Posted by Martin | July 3, 2008 6:45 PM
Folks;
Complaining about Joe's ability in the media, for those of us in America, please remember this...
Journalism = Sensationalism
Without "sensationalism" there is no entertainment in news, and without these factors, news is nothing more than bland valuable information and who gives a crap about high quality journalism and being truly informed in a non-biased atmosphere?
The advertisers aren't interested in the quality and accuracy of the facts, only that it draws a prospect in a positive financial gain to their product, and thus, the media makes bank in drawing a crowd.
I'm not picking on Joe, media in general has been doing this for a few decades now.
Posted by Douglas S. Taylor | July 4, 2008 12:49 PM
@Douglas S. Taylor:
I think your most likely correct in your observations. Still, I think its needed to point out when the line is crossed on correct and incorrect blogging, as was the case. Also, I know that Joe is at the mercy of his employers at EWeek. Interesting that EWeek tried Silverlight briefly, and then went back to Flash. Bet they counted the numbers of users watching those Silverlight videos, and decided the MS honey was not so sweet.
As far as Ballmer buying Yahoo or part of it, its going to happen. Icahn is a fool, who is doing the work of Ballmer to get the price for Yahoo down. If the stockholders hang tough with Yang, Ballmer will give them the $37 asking price cash, without any lousy MS half stock. This Icahn ploy, is the work of a desperate man, Ballmer. Ballmer has no option after this but to buy at the stated price.
Posted by chips | July 6, 2008 6:41 PM
The last word on Bill Gates:
http://science.slashdot.org/article.pl?sid=08/02/19/0153254&from=rss
Gates Foundation Vs. Openness In Research
and news.slashdot.org/news/08/07/05/1153253.shtml
The comments on these two articles are often better with better links than the original articles, just like MS Watch. You decide, is Gates a reformed man, or just tax dodger.
Posted by The Hand | July 6, 2008 10:51 PM