Is buying Yahoo an All-cure for Microsoft ?


It has been roughly an year now since the idea of Balmer to take over Yahoo  impacted the future of several executives associated with both Yahoo and Microsoft. Even though the deal ended with absolute zero progress, and Redmond saying they are no more interested, there are still rumours around that new Yahoo CEO Carol Bartz will look into the deal again. AlthoughYahoo stock gained 2.6% on that day ,  Carol didn’t reveal her plans about the future of troubled internet firm and her options in hand seem too few with less time to act .

However, in redmond, a recent interview of Balmer with AP (Associated Press) revealed that with the new CEO , Balmer is back to reconsider the deal only if old CEO Yang keeps quiet.  This hints the begining of another dancing round for both Yahoo and MS with Google enjoying the show.  The only benefitor from MS – Yahoo deal is neither MS nor Yahoo but its the strong rival both are trying to bend, google.  While MS focused on getting Yahoo and Yahoo focused on avoiding MS, both are left behind in the game, keeping the All-time-winner, google which wants to grab even that single digit share of search market from Yahoo and Live. 

If big-headed Balmer can keep calm and think over again what has happened , he will soon realize that Yahoo is no more the Yahoo that he intend to buy. It has lost many key executives  and most of market share where MS is looking at, Search Engine.  If MS wants to buy all of Yahoo instead of its search division, it would become the biggest blunder MS has ever made. Yahoo is weak in all of its areas except Auto sales and Finance. As of Dec 2008, Yahoo has 10% of search market share decreasing steadily with a speed of 20%/year  and MSN, live combined has 4.6% of share decreasing at 25%. So, even if Balmer manages to buy Yaho now, his market share may be 15% which is decreasing at 22%/year ending at at 4.6% in 5 years which is the share if MS in the market now. Also, MS used its innnovation in marketing instead of improving search results by offering Cash back etc., which nobody remembered anymore. 

The key thing in any business is not just buying the leader, but trying to beat the leader. Diff. innovations and ideas experimented thorugh out the path will someday lead you to be the leader.The best thing for Balmer is to invest more in its search technology than ever and see if it works out instead of going for Yaho,  whose share is sure to deteriorate soon if not now.  Hire new researches , get people from academia, fund across universities to see if you can improve your search results by atleast 1%. If you invest what ever you want to do in academia instead of Yahoo, your market share is definitely going to increase Balmer! Stop throwing keyboards at ppl and use those keys to see the scary results your search engine gives !!


Anish Muppalaneni


3 Responses to “Is buying Yahoo an All-cure for Microsoft ?”

  1. dandalu ayyagaaru…dandalu….meeru em chepthe adhe rightu…..

  2. the above person’s comments are very good…seems a very clever person..who r u?

  3. 3 Anish

    Who is this.. It sounds sooo spammy…

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