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Google Makes Bid For Yahoo Rescue

Posted by Leslie Poston on February 4th, 2008

Say no To Microsoft Yahoo MergerShortly after the Microsoft hostile takeover bid was announced, Google contacted Yahoo to discuss possibly banding together for a bail out. If the choice is between two monopolies, Google or Microsoft, I'd want Yahoo to go with Google. Mainly because replacing Microsoft with Google would at least give it backing of a company that "gets" the Internet, as opposed to one that struggles against even the most basic compliance with web standards.

Yahoo's search engine has always been terrible at producing relevant results. With Google as a potential business partner, Yahoo could dump the terrible search engine like it dumped its music service, merge its email into the Gmail system, and concentrate on what it does best - social applications like Yahoo Groups, Flickr, and others. Yahoo's strong point has always been in understanding fun ways to bring people together, and a partnership with Google would give it a way to enhance that.

Microsoft, on the other hand, is the worst possible business partner for Yahoo in my opinion. It doesn't understand what its customers want. It has no sense of fun. It refuses to make Internet Explorer compatible with internet standards. It refuses to detach Internet Explorer from its operating system so that it can be a portable browser. It uses invasive business techniques against its own customers whenever possible, offers over prices proprietary software solutions, and generally remains out of touch with the Web 2.0 Internet and what the people who use it want.

Mark Mahaney, an analyst for Citigroup, estimated that the switch could add 25 percent to Yahoo's cash flow, bolstering its finances and potentially its stock price, as part of an effort by Yahoo to remain an independent company.

Between the offer of help from Google (not entirely altruistic, since Google stands to make a tidy sum from running ads on the Yahoo network) and rumors of News Corp scrambling to get in on the action as well, Microsoft may not have the slam dunk takeover it was hoping for. Personally, I'd rather see either News Corp or Google bail Yahoo out than see Microsoft have any more sway over the technological world than it already does. At least News Corp is strong in the multi media entertainment industry and Google has web knowledge, making them both a slightly better fit for the job of saving the fumbling yodel.

UPDATE 2/4/08: News Corp has finally responded to the persistent questions bout a possible Yahoo bail out with a categorical denial , leaving the only contenders Google and Microsoft.

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Trackbacks

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The Ongoing Microsoft and Yahoo! (or Google?) Merger Things | Content Blog February 5th, 2008 at 9:28 am

[…] Note: According to the latest buzz Google is trying to salvage Yahoo from Microsoft’s hostile overtures by orchestrating a bigger bid than Microsoft’s $44.6 billion. By the time I read this latest update I had already started writing on the previous scenario so I am going ahead and publishing the post. […]

Mic-Goo? Mic-Ya? Ya-Goo? « Ravings about Technology March 9th, 2008 at 3:05 am

[…] Yahoo’s strong point is that it understand how to bring poeple together to have fun but its search engine has always not been competent enough to compete with Google’s. With Google as a potential business partner, Yahoo can merge its email into Gmail and concentrate on the enhancement of its social applications such as Yahoo! Groups, Flickr etc. […]

Comments

Cyndy Aleo-Carreira February 4th, 2008 at 3:44 pm

If Google were to manage to scoop Yahoo out from under Microsoft on this one it would be absolutely the worst thing for the Internet. Plain and simple. Google is very slowly amassing their own little monopoly that makes anything Microsoft ever was pale in comparison.

Google is no longer the little guy over in the corner innovating and avoiding the thumb of The Man. They ARE The Man now. If they were to purchase Yahoo, there would be absolutely ZERO competition in online search. Zero. Ask.com would be forced under, or probably bought by News Corp or Microsoft. They would also pwn the global ad market. What do you think that would do for revenue for little blogs and sites that survive on AdSense? If there is no competition, why would Google pay any decent sort of rates?

Leslie Poston February 4th, 2008 at 6:09 pm

See article for breaking news update as of 6PM today.

Jeremy Hubert February 4th, 2008 at 9:54 pm

I just wanted to say that I don’t think you’re being fair to Yahoo’s search result relevancy. I’ve actually found that I can often get better results at Yahoo these days then at Google. I think they’re on par as far as relevancy goes. Google’s main advantage these days is just that the verb “to Google” means “to Search.” That’s one that Yahoo is never going to beat.

Leslie Poston February 4th, 2008 at 11:29 pm

I haven’t gotten a relevant search result from Yahoo in years. I do get an oddly sorted mix of results that have nothing to do with what I asked for, though. Same goes for sites like Ask.com.

As for the Google/Microsoft monopoly debate, if I have to choose between “dictators”, I’ll choose the one that understands the product and the market, not the one that still puts out crapware and expects their users to swallow it whole, no questions asked. Personally, I’d rather see Yahoo find a way to stay independent, because whether or not their search works, their social sites play an important part online for many people.

SF February 5th, 2008 at 7:19 am

and once it happens, all of our emails (Yahoo) will be crawled by G-oo-gle.

Cyndy Aleo-Carreira February 5th, 2008 at 8:07 am

The difference between choosing between Google and Microsoft as “dictators” is that only Google would be a dictator. Even with the purchase of Yahoo, Microsoft still wouldn’t have anything close to a majority of the market share, but Google would have nearly 80% of search if they got it.

Without competition, there is no innovation. Note what Stephen Houck says, “When a competitor complains… the regulators suspect the deal might be good for competition.” (http://svextra.com/blogs/gmsv/2008/02/new_movie_on_yahoo_drama_–_there_will_be_fud.html)

We spent the 80s and 90s hating Microsoft, but we are allowing Google to become the new Microsoft right before our eyes.

@SF You mean people aren’t all using Gmail? Google will have to fix that ASAP!

farang February 6th, 2008 at 6:26 am

You can’t possibly wish Google to win over Microsoft in this case:
Google has an almost utter monopoly on the advertising business.

At least a merger between Microsoft and Yahoo may restart the game!

Adam Creare February 6th, 2008 at 10:21 am

It’s disappointing that Yahoo will almost inevitably be unable to progress any further on its own into Web 2.0 technologies as I’ve been a long time user of their email , site explorer, search engine and news services for a while, and they’ve all been of a high standard in my opinion.

If Google were to take over, it would be a shame to loose variety of choice and of the course the competition by each company to better the other. The prospect of both companies working together on projects however would open up the possibility of more complete Web 2.0 apps being released in the future.

I think Microsoft would be the better choice however. With Yahoo’s knowledge and experience on their side, it could vastly improve Microsoft’s online operations and bring about a better rival to Google’s growing monopoly over the area.

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