Not a good merger
There is no significant business value in Microsoft's proposed takeover of Yahoo. It's no threat to Google, on the contrary. In the long term, Microsoft should divide itself into a collection of 5-10 independent, competing companies -- if its shareholders want to create the sparks that will let their capital innovate in and lead a non-desktop world of computing.
Scott Rosenberg: For Microsoft, this move is a final admission of the utter failure of the company's effort to build an online business for itself over the past decade -- in services, advertising or content. Winning Yahoo would surely bolster Microsoft in this area in the short term. But in the long term, these efforts at lashing together two failures in hopes of sparking a success have never prospered.
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