
Hey Microsoft, How ’bout We Do That First Deal You Offered? - terpua
http://www.techcrunch.com/2008/06/14/hey-microsoft-how-bout-we-do-that-first-deal-you-offered/
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sealedidentity
Sorry but I got to completely disagree with Arrington's analysis. Yahoo is a
media portal and they do graphic ads in search pretty well too. Where Yahoo
went bust was in trying to usurp Google's lead in search. That is the only
area where they are #2. Yahoo still is the #1 media portal on the web and the
following they have is very loyal.

If Yahoo had taken MS's deal it would've struck at the very heart where the
competencies lie. They would've had to give up on their Panama system which is
being tweaked and is currently showing better prospects. $1B for putting paid
to all Yahoo research and their tech is an insult to Yahoo techies. MS just
provided an opportunity to increase the current operating income and cash flow
but in all other quarters straitjacketed Yahoo. Yahoo would be forced to stop
managing and hiring search engineers and just display ads. It is an industry
fact that MS's per query revenue projected is lower than Yahoo's current
revenue.

What Microsoft was asking Yahoo to do was too risky. They have a history of
screwing up internet deals and straitjacketing Yahoo's core competencies in
exchange for cash is too much to ask.

I will agree Jerry mismanaged Yahoo a bit much, but running a $2B company
isn't a joke.

I believe Yahoo was right in rejecting MS's deal. They needed Yahoo more than
it needed them.

And Icahn isn't an angel. He is just itching for a fight to make a few hundred
millions.

Focusing on the Google alliance gives Yahoo enough leeway to get marginally
additional revenue while concentrating on their media and Panama divisions.

The stock might be down now, but the market is quite open for experimentation.
And if they get it right, who knows, the stock will perhaps shoot up like
before.

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ComputerGuru
First good TechCrunch article in a long time - it's nice to see Arrington can
still write a decent, fair, and sensible article once in a while.

