Proposed Microsoft bid to buy Yahoo

What do you folks think about this? I like this quote, potentially taken out of context πŸ™‚

Microsoft Chief Executive Steve Ballmer said the deal would transform its money-losing Internet division, which it sees as critical to growth, into a profitable pillar of its business.

“We have been losing money. Our plan here would be to not lose money in the future,” he said on a conference call

Maureen Jann About the author

Maureen Jann is a veteran B2B marketer whose career in Digital Media has grown up with the Internet. A self-described jill-of-all-trades, Maureen has elevated creative problem solving to an art form and enjoys the daily challenges of driving business results in unexpected ways. Her skills as an entrepreneur, content marketer, creative director and passionate people manager set her apart from the pack. Maureen has worked in every corner of marketing making her a skilled tactical resource as well as a strategic partner. Recently, she was the captain of the marketing ship for an award-winning professional services firm and is currently creating a content marketing strategy for Point It, a digital marketing agency.

  • Dave Pektas

    If Yahoo/MSN merge, my first few thoughts:

    -MSN has the most strict editorial policies and has had a very slow, controled roll out of their content network. They would (hopefully) clean Yahoo’s content network up so that it is not full of poor quality sites. Maybe they could do the same for some of the stuff that happens with Yahoo’s search network as well.

    -MSN is probably tired of being considered the third choice of search engine marketers. They probably feel they have a superior product to Yahoo and that they should be the second choice, so this merger could make that happen.

    -If they merge, I am scared what might happen to Yahoo Search Submit Pro…that works very, very well for my clients. I doubt MSN would allow that product to exist under their name.

    February 2, 2008 at 9:35 am
  • Lisa Sanner

    I think it’s a no- brainer. Basic strategic competition 101. Microsoft has cash, technology, worldwide operations. Yahoo has brand, loyal heavy users audience, longevity. The two together are the only way to fight Google’s dominance. This time their bid might be high enough and be the right timing for Y!

    February 2, 2008 at 5:42 pm
  • ericl

    Here’s another perspective about how valuable MSFT views online advertising’s potential…

    Yahoo runs much of their technology on open source software platforms. Microsoft has historically been very critical of open source. So they’re willing to either change tune and embrace open source OR will rip it all out and replace with MSFT technology. Either proposition is very expensive.

    February 6, 2008 at 12:12 pm
  • Jon Lisbin

    Thanks for your comments. I guess I might as well chime in with my opinion.

    From an agency POV, I don’t really see this as a big change. Before MSFT split off as a partner under Yahoo’s platform, we had two search platforms to work with. When MSFT split off there were three platforms. Now there likely will be two again. As long as MSFT and Yahoo counterbalance Google there will be competition. If Google purchases Yahoo, then I’d be more concerned about the lack of competition and I suppose so would the regulatory commission.

    My other thought is about how long it will take for the two platforms to merge? We all know what a painful experience it was moving over to Panama from Yahoo’s overture platform. Are we going to have to go through that again? How many years will it take to unify to one platform. Fun stuff to think about and probably a much larger and more difficult task then even Microsoft wants to recognize.

    Back to you guys and gals.

    February 6, 2008 at 2:35 pm
  • Dave Pektas

    Yahoo rejected the bid. Just had a call with my Yahoo reps. They say they are not sure what will happen next, but they sounded like everyone there was bracing for MSN to extend another offer.

    Here’s the article from the AP.

    February 11, 2008 at 11:04 am

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