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Sunday, July 13, 2008

Yahoo! and Microsoft Debacle

I think the root of the failure of Microsoft (MSFT) trying to buy Yahoo! (YHOO) thus far is that Steve Ballmer (CEO of Microsoft) is not a good businessman and the Yahoo! company culture doesn't really mesh with Microsoft's.

People like Carl Ichan trying to force Yahoo! to accept this deal, are like trying to make kids take castor oil. There is a distinct distaste for Mircosoft in Silicon Valley where Yahoo! is located, because Microsoft has a history of being a business bully, resisting innovation, trying to stomp out and snuff competition rather than promoting it. In short, anything good for Microsoft is bad for everyone else. I can't blame Jerry Yang the innovator and co-founder of Yahoo! for not wanting to sell out to Microsoft.

Additionally, MSFT is not really a innovative company anymore, and they are playing catch-up on multiple fronts. Buying Yahoo might help them short-term, but eventually, I believe they will only screw-up Yahoo! worse and reduce options for Internet users.

By the way, I have owned shares of Google since 2006.

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