Cloud, Digital, SaaS, Enterprise 2.0, Enterprise Software, CIO, Social Media, Mobility, Trends, Markets, Thoughts, Technologies, Outsourcing


Contact Me:

Linkedin Facebook Twitter Google Profile


wwwThis Blog
Google Book Search



  • Creative Commons License
  • This page is powered by Blogger. Isn't yours?
Enter your email address below to subscribe to this Blog !

powered by Bloglet


Friday, May 04, 2007

Microsoft & Yahoo : Will They Come Together?

Will Microsoft buy Yahoo? That’s the prospect that’s gaining currency this morning . I wrote a brief note at Sandhill.com on this emerging development.
Few days back, I wrote that Google’s aggression is not only going to help its cause but very likely to drive Yahoo and Microsoft to come together. Its interesting to see what all a shrewd market leader can do – expand the market, consolidate its position and define what competition needs to do!! The increased likelihood for consolidation within the Internet space given the challenges of running the optimal mix of businesses, which we have identified as content, portal, search, marketplace/e-commerce, communications (IM, e-mail, VoIP), and payments looks like is waiting to happen. Every advance being made in anyone of the spaces here needs resources to build and expand but Google’s money making machinery makes all these advances from players like MSN & Yahoo look puny. How can the competition get on an even keel – perhaps when Microsoft buys out Yahoo. It needs a sustainable critical mass in terms of content, infrastructure and advertiser base and Yahoo comes in handy there. Chances of organic growth look too dim for Microsoft to look at alternate ways of getting there center stage and literally fight eyeball to eyeball with Google for traffic and monetization opportunities. Outside of Yahoo, the only other player that Microsoft can look at is eBay.
The acquisition can provide Microsoft with powerful assets – proven scalable platforms, stakeholder relationships, monetizable content and channels drawing eyeballs. On the flip side, mega deals always carry huge risks – no one can forget Time Warner – AOL fiasco . I get a sense that something might happen – but as again execution would be the key – the opportunity to change the rule of the game is very bright if these two players choose to come together. Read the full note here.

Labels: , , ,

ThinkExist.com Quotes
Sadagopan's Weblog on Emerging Technologies, Trends,Thoughts, Ideas & Cyberworld
"All views expressed are my personal views are not related in any way to my employer"