There are many blogs that have come out to criticize Google’s response to Microsoft’s proposed acquisition of yahoo. Techcruch for example claims that Google response meant that Google is afraid of Microsoft. I beg to differ.
Microsoft and Yahoo have both tried to build web search and Ad platforms with little or no success. Combine two bad ideas or ideas that have not worked and you make one hell of mess. This is where Microsoft/Yahoo—“MicroHoo” are headed. The combination of these two companies means one thing—disaster.
Google’s response was for one reason; to let Microsoft know that Google is watching Microsoft moves, period. If I were in Google’s shoes, I would do the same thing, and so would any other company out there.
Think about this for second, when email was a big thing, where did everyone go for their email accounts, and to do their web searches, Yahoo and Microsoft, today not any more. Google has provided a simple platform for everyone, from email to web searches. In addition Google has made it possible for people money online with Google Adsense. When did Microsoft help you make money? Probably never I suppose and if Microsoft has, it must have been following Google’s footsteps, and the same applies to Yahoo. I bet you’ve heard small sites like whateverlife making a killing every month, who is behind all this, Microsoft or Yahoo, I don’t think so.
It is also true to say that Microsoft/Yahoo will definitely lessen web competition. It does not take a genius to figure that out. 3-1=2 and 2 is not equal to 3. Yahoo being eliminated from the web arena means one less company competing on the web arena. Even with small startups coming to play in the web field to fill the number three slot, we still have one less company on the arena.
I quote Techcrunch “One argument against the deal is that there will be fewer [less] opportunities for startups to be bought out with Yahoo out of the picture. That is true…” do I need to say more?
Microsoft has great online applications but very few people use them, because they are not as good as Google’s. This is the reason; drones of online enthusiasts are migrating to Google, including me. I bet that you even have a Gmail account. Why? It is simple to use, cleaner than either Microsoft or Yahoo’s emails. Think about this for a second. Microsoft has @live.com, @msn.com, @hotmail.com. Isn’t this insane…
Ask any accountant they will tell you that mergers and acquisitions are very difficult to accomplish because of culture clash and this is what Microsoft/Yahoo will be facing if and when this deal gets to go through. Microsoft and Yahoo are two different companies, with different cultures and to make matters worse they have been enemies for a while, competing with each other in different fronts. For Yahoo employees, the scars are still there even if the wounds have healed. This will be one big hurdle that Microsoft/Yahoo have to over come.
Google is king, and Google has been a great innovator. Microsoft on the other hand has slacked off and has for years stolen what other companies have built, and the same applies here. Look at what Microsoft did to hotmail. It’s just a fact, Microsoft will destroy Yahoo’s brand name just as it once did with hotmail and other companies it has acquired.
Last but important, economists claim that markets dominated by one company see stagnation in growth and lack innovation, but the web is just the opposite. If Google was the only company on the web, no such misfortunes will incur. The web is still young and there is tons of innovation to be done, and lot’s of new ways to innovate. Google’s motto “Do no evil” ….you get the picture. Microsoft/Yahoo deal is not healthy deal and it should not be allowed to happen. It is simply a bad bad idea.
