« 2008 Superbowl Advertising Contest | Main | The Oprah Factor »

February 2008


Aki Kuwabara

Microsoft's takeover of Yahoo seems like a desperate move to mount resistance against Google.

Yahoo, a quintessential Web 1.0 company, has failed to make the transition to Web 2.0 while Google leaped ahead of the curve in the evolution of the Web. Collaboration between a company that is synonymous with the PC operating systems and a Web 1.0 company to compete with the pioneer of Web 2.0 is far from a winning proposition.

Microsoft and Yahoo probably need to stop obsessing over competition with Google and reevaluate their focus.


Firstly, your blog is very straight forward and easy to understand with the points by points outline. Your honest opinion is much appreciated because this is such a big issue that can make a whole difference in our world. However, I dont agree with Laura that Microsoft and Yahoo merger will not work because both companies need each other. They need to combine power to expand their business as whole. I think the move will benefit both companies because Yahoo is losing market share to the mighty Google and Microsoft MSN 'Market Place' is not moving anywhere. By combining the two forces, Microsoft is going to move to the second ranking in Search Engine Marketing market and Yahoo will have all the capital back up from Microsoft huge pile of money in developing more advance SEM, therefore both companies will have better ground to compete with Google. I dont agree with Laura first point of view that combining two different cultures are not necessarily going to work. Regarding culture, if they keep the names, people will not even know the difference before or after merger, so people will not worry about it. They both can keep their current company's environments and somehow combining the crowds of each company to attract wider audience as a whole. The information given on the net will also be expanded and that will be beneficial for many internet users. If we compare Microsoft and Yahoo agaisnt Google and YouTube, I think they both have similarities which is two giant companies want to expand their business by buying smaller businesses that already been established. Yahoo has been in the business much longer than YouTube, and they both are in the stage where they need help from other companies to survive and expand. Again, business decision is like gambling, even though you already do your best to analyze and predict; sometimes the outcomes are unpredictable. For me, it is still a best bet for Microsoft to buy Yahoo since it will give credits for both companies.

Neil Bull

Maybe they should go with Ya-Soft... would make sense really!

Microsoft’s biggest asset is also their biggest problem... they have such a dominant position. Sometimes I wonder whether it is executive ego that drives these major 'side' decisions, or a simple boredom that sets in from owning so much of the market. The ultimate price of these misadventures is a loss of focus, which is risky business in a marketplace that has learned to move quickly.

I agree with your strategy Laura. Give the all conquering boys a new toy to play with, but it needs to be one that keeps them focused.


Yes, I agree with you. I also feel Microsoft facebook acquistion is also a highly pitched overvalued acquistion unless microsoft find revenue sources:)


Michael Castello

I am new to your blog and like your bottom up approach. Question: Is .com no longer an "extension" but now a "brand"?

Gordon Whitehead

Love and agree with your post...

Luigui Moterani

I'm concerned about Bill Gates leaving Microsoft... something tells me that the company might loose (even more) it's focus. Remember Dell?


Agreed. And so do the startups that are already working on the new generation that will leapfrog Google. New solutions to new problems with new technology. Focused. Putting all their resources into attaining one goal: Become the gorilla of a great new market category within five years.

The comments to this entry are closed.

By Al & Laura Ries

As seen on

  • www.flickr.com
    ries brown's items tagged with badge More of ries brown's stuff tagged with badge
  • www.flickr.com
    This is a Flickr badge showing public photos from ries brown tagged with badge. Make your own badge here.
Blog powered by Typepad
Member since 07/2004