Please create an account to participate in the Slashdot moderation system

 



Forgot your password?
typodupeerror
×
Microsoft Businesses The Almighty Buck The Internet Yahoo!

Yahoo Deal Is Big, but Is It the Next Big Thing? 159

mattsgotredhair brings us a NYTimes article discussing how Microsoft's bid for Yahoo contrasts against one of the core philosophies of Silicon Valley: looking forward. From the Times: "Microsoft may see Yahoo as its last best chance to catch up. But for all its size and ambition, the bid has not been greeted with enthusiasm. That may be because Silicon Valley favors bottom-up innovation instead of growth by acquisition. The region's investment money and brain power are tuned to start-ups that can anticipate the next big thing rather than chase the last one. 'This is the very nature of the Valley,' said Jim Breyer of the venture capital firm Accel Partners. 'After very strong growth, businesses by definition start to slow as competition increases and young creative start-ups begin to attack the incumbents.'"
This discussion has been archived. No new comments can be posted.

Yahoo Deal Is Big, but Is It the Next Big Thing?

Comments Filter:
  • by tgatliff ( 311583 ) on Sunday February 03, 2008 @09:32AM (#22281628)
    How is this the next big thing when MS buying Yahoo shows how frustrated they are with their MSN Live initiative? Yes, I definitely think that buying Yahoo was a smart move at a great longterm price, but other than them building it directly into Vista 2.0, I dont see how much more good it will do them. The move was simply them "buying" marketshare in an attempt to trump Google. Considering that Yahoo has already shown that they cannot compete with Google, I suspect it will turn out just like the early days of the Compaq / HP deal in relation to Dell. This is just my opinion, however...
  • by Mr. Underbridge ( 666784 ) on Sunday February 03, 2008 @09:38AM (#22281652)

    Sure, Silicon Valley VC folks love startups, because they get a piece of the action. Heck, they were happy as pigs in shit around 1998, despite the fact that about 1% of those startups had any hope of seeing a profit. But it doesn't mean that MS+Yahoo is destined to lose, simply because they're not the chic pick anymore.

    None of that has any bearing on whether MS+Yahoo can beat Google or any of the hordes of little companies coming from Silicon Valley.

  • by TheRaven64 ( 641858 ) on Sunday February 03, 2008 @09:40AM (#22281662) Journal

    I suspect it will turn out just like the early days of the Compaq / HP deal in relation to Dell
    While the early days didn't go so well in that deal, HP now has 17.6% of the market while Dell only has 13.9% [itworld.com].
  • by downix ( 84795 ) on Sunday February 03, 2008 @09:47AM (#22281696) Homepage
    Microsoft has only $17 billion in cash and easily liquidatable shares (almost all MSFT stock). A $44.6 billion bid requires them to "print money" ie Shares. This deal is absolutely horrid for any responsible stock analysist or stockholder for either company. WHat Microsoft is basically offering is to produce new shares, diluting ownership for all involved, which when paired with the rapid selloff upon deal conclusion, will drive the price of the stock downward even moreso than it has been since (It still hasn't recovered from the recession of '01). Add in that their operating cash is mostly stocks which would be driven down by this, you're looking at the potential for a bite more than they can chew.
  • by 140Mandak262Jamuna ( 970587 ) on Sunday February 03, 2008 @10:06AM (#22281780) Journal
    The techies and engineers might respect the startups, the innovators and the one who finds the next big thing, But almost all the startups dream of being acquired by the big boys. In fact for the people with the money, the sugar daddies and the venture capitalists, being acquired is really the business plan.

    Vut that is true for the small startups. For a company that used to be a big boy itself, may be it is not a very "respectable" thing. But respect is probably over rated anyway.

  • by ishobo ( 160209 ) on Sunday February 03, 2008 @10:17AM (#22281836)
    The valley does indeed favor bottom-up innovation, because that generates properties for acquisitions. Most companies in Silicon Valley would not exist in the form they are today if it were not for acquiring other companies or product lines - Oracle, Marvell, Sun, AMD, National Semi, HP, and yes Google.

  • by astrashe ( 7452 ) on Sunday February 03, 2008 @11:09AM (#22282108) Journal
    MS looses to Google because their management makes bad choices. At least their choices are bad when compared to Google's.

    MS's management will continue to make bad choices. If they had enough money to buy Google itself, and if anti-trust concerns weren't a factor, it wouldn't matter. They would break Google and push it into the ground. They problem isn't their strategic position. The problem is in between their ears.

    Look at Hotmail and Gmail. Hotmail was a very early web email service. MS bought them. Then they just let it sit there. MS people saw Oddpost coming down the road, and they should have gotten all pumped up with what was possible. That's apparently what happened at Google -- someone saw that fancy Oddpost ajax email client, and said, let's do this better than Oddpost is doing it.

    MS doesn't try to do much until someone pokes them with a stick, and a lot of times they don't do much even then. Right now the world is screaming at them about all of the things wrong with Vista, and their response is -- no, you are all STUPID, and we are right, and you just don't get how awesome Vista is.

    They're not fixing anything.

    They're the victims of their own monopoly. They're fat and stupid and lazy, and they think the world owes them success. They're insanely profitable, but it's because they're in the catbird seat, and not because they're earning it. They don't have to earn it, and because they don't feel the heat, they can't earn it.

    So you know, sit back in your lavish headquarters, and reminisce about how great it was to go out and threaten to cut off people's air supplies, and how wonderful the world was when you could bully people effectively.

    I feel bad for yahoo. I remember when it was just some page on a guy's workstation at stanford. They did a lot of great things. They don't deserve this ignominious fate.

    And there are stories floating around that yahoo people are saying -- there's no way in hell that we'll work for MS. So, MS, know that everyone dislikes you. And know that it's a direct consequence of your deliberately cultivated culture of bullying and thuggery.

    Everyone at yahoo knows that when you buy that company, you're going to break it, and that going to work on a day to day basis is going to suck. And believe it or not, that has a lot to do with why you will not beat google.

    Someday google will suck too. Their culture will rot, and dumb people will climb on top of the smart people. But that day is a long way off.

    So you know, go off and think about how to make sure my monitor will prevent me from playing unauthorized videos, or how to make my computer's audio system check up on the license status of my music. Because I'm your customer, and believe me, that's what I'm really pining away for. That's what I want more than anything. You know me so well it's scary sometimes.

  • Re:Could it be .... (Score:5, Interesting)

    by irtza ( 893217 ) on Sunday February 03, 2008 @12:05PM (#22282452) Homepage
    I doubt this will impact the economy much. Granted that if this deal goes ahead, many redundant jobs may be cut, but in the end I think that market forces would have forced further contraction in either Microsoft's own web initiatives or on yahoo's causing these people to be removed from there job anyways - look at the layoffs at yahoo that have already occurred. Despite my distaste for MS, this would probably be beneficial to the US economy. The real question is if there is still enough name recognition and resources within yahoo to merit such a move.

    Unfortunately for MS, the real threat to Google will most likely be from another startup kind of like what this article is getting at. What I find intersting is that if the patent system actually worked, one of the early search engines such as web crawler or alta vista would still control the market and companies such as Google and MS would have had to bow out secondary to valid patents. - and this would allow these companies in theory to grow their technology - plus they could use the patent clout to recruit the appropriate talent (in theory).

    In the end the thing that will hurt the US economy the most is globalization and the realization that intelligence and the ability to "create" isn't as valuable as it may seem. It can be converted to a commodity along with almost everything else.

    If soft engineers in this country want protection, they will most likely need a union and a licensing exam like lawyers and doctors
  • What about DSL? (Score:2, Interesting)

    by steltho ( 1121605 ) on Sunday February 03, 2008 @12:49PM (#22282776)
    If Microsoft ends up buying Yahoo, does that mean I will be a subscriber of AT&T-Microsoft DSL?
  • Re:Could it be .... (Score:3, Interesting)

    by OneFix ( 18661 ) on Sunday February 03, 2008 @02:24PM (#22283476)
    If MS gets rid of a bunch of the Yahoo employees like some people are suggesting, Google will likely start throwing job offers their way.

    From what I can tell, some of their FOSS developers may already be getting offers from Google, since the new Yahoo will likely be at the best unrewarding for those developers.

    Which brings me to a question...what happens to Zimbra? Which is now a Yahoo product and a major competitor to Exchange...
  • by pallmall1 ( 882819 ) on Sunday February 03, 2008 @02:40PM (#22283630)

    So either they'll have to do like they did with Hotmail, and let it run on FreeBSD until they've basically re-written in from scratch to use their technology.
    No, they'll just switch to Novell and hail the operation as a great success for interoperability using MS patent encumbered SUSE.

"Money is the root of all money." -- the moving finger

Working...