Got a few emails and phone inquiries asking me for my take on the $42 billion hostile bid by Microsoft to take over Yahoo!
It is clear that the web's #2 search engine has been reeling having just laid off 1,000 yodelers last week and seeing its stock plummet to $18/share. However, I am not so sure that this is the perfect fit or complement of the 2 companies existing web presences. For the foreseeable future the company would still probably publish both the msn and yahoo! site for at least an interim period until a plan for how they would work through their conflicting or redundant content agreements. Eventually, I foresee that one will eventually be nothing more than a redirect to the other, I am thinking Yahoo! as service of MSN is probably what you will end up with.
One thing that will be interesting to see is how this effects Microsoft's longterm vulnerability to future business practices issues in a Democratic administration. It is no accident that Gates, Ballmer and the rest of the Redding, WA elite have donated more to Republicans than Democrats since the bringing of the infamous multi state class action during the Clinton Administration.
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