Monday, February 11, 2008

Yahoo Rejects Opening MS Bid

Link to the Guardian article

Generally all first bids are rejected because the company being purchased doesn't want to leave a lot of cash on the table. Personally, I see this merger as being less than inspiring. Yahoo is having trouble competing with the Google behemoth and Microsoft certainly knows how to dish out irrelevant search results. I'm very confident that Microsoft can push Yahoo into obscurity faster than just about anybody else.

I actually liked some of the open apis that Yahoo has delivered in the past year or two as well as their finance page being pretty solid. Unfortunately, that good work always seems to take a back seat to search which doesn't really get me too excited. I think it's difficult to create competitive advantage just with search. It's the SaaS model that continues to be interesting to me in terms of a way to deliver both value to the user and eyeballs to the advertisers.

Generally speaking I don't see this business combination providing much value to users and minimal value to existing shareholders of both companies.

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