Wednesday, July 29, 2009

Microsoft Yahoo search deal is a win-loose

The search deal between Microsoft and Yahoo is a definite win-loose agreement. Microsoft has done it again, and it's a brilliant move, even though it took them more than a year to do it. Brilliant, but desperate, in my opinion. It'll be exciting to watch the race for the search market!

Why it's a case of win-loose? Yahoo's Carol Bartz asserts "the boatloads of value to Yahoo" in this deal, but the market speaks for itself, and it says what most of us are thinking: Whereas Yahoo share value dropped 10.5 %, Microsoft moved slightly up with 0.6 %, meaning Yahoo is continually losing to Google and we're not convinced that Microsoft will be able to bridge the gap with this.

If you're asking me, key people at Yahoo will be fleeing the company pretty soon. And by key people I mostly mean the real brains, not necessarily the top executives. The Yahoo era, in my opinion is history.

The Microsoft Yahoo deal isn't really a surprise, though. We could see it coming. I'm much more excited by IBM acquiring SPSS. That's a shift that will make a difference!

Another excellent article about the search deal.

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