Microsoft buying Yahoo! – Good or bad?

The press and blogosphere have gone nuts about what this could mean. MOST of them thinking it’s a bad idea.

               &   + = GOOD or BAD?

Me, on the other hand, think quite the opposite. Like I’ve said before, where many people like to take anti-stances and be all pessimistic about things, I look at the good side of things.

People are saying the deal means bad things, will fail, and is utterly useless because:

  1. Yahoo! is worth nothing as much as MS will pay for it, so it’s a waste of money
  2. Y! has little good sites worth buying for
  3. This is Microsoft’s more aggressive ‘hostile’ attempt to beat Google and takeover Yahoo! Inc.
  4. Monopoly
  5. Worse sites than they were before

I would like to counter this by saying:

  1. Yahoo! has to be worth something. Maybe not as much as MS is paying for it (probably to make the deal a sweet one!) but it’s like the #1 visited site in the world. It’s a very popular site for it’s services and content. Which it has a lot of. So it must be worth a lot if it has many users and sites.
  2. How about Flickr? Y! Mail? Not to mention deals, such as the one with AT&T for it’s internet services, among other importance that Yahoo! bestows in Asia.
  3. So, what if it is? It shows that Microsoft isn’t going to sit down, and let the world move on past them. It shows that they’re really in the internet business for sure, and is willing to adapt by any means.
  4. You have to be kidding to call this a monopoly. Google still by far would be considered a monopoly by search if you have to say it this way. There is NO MONOPOLY on the web. There’s a large number of alternatives you could always use if you don’t want to stick with the top dogs. Nobody is forcing you to use any of them.
  5. If Microsoft did that, they would go broke in a New York minute. Does anybody really think that Microsoft is going to pull a big bonehead mistake like that, and squash some of the success that Yahoo! has had? I don’t think so. Maybe the haters hope so, but that’s just plain dumb.

So most people not liking the idea, is just because they don’t like Microsoft. The people who avoid Microsoft as much as they can, that they don’t ever even try some of their latest stuff, and making up jokes and things to keep away from it. That’s dumb beyond dumb.

Here’s how I basically hope to see accomplished with the merger : Best of Y! + Best of WinLive/MSN = One great cohesive web services/content site provider.

Here’s how the right scenario should work out:

  1. Microsoft actually buys Y! for that amount of money, with the BIG promise that the worst to be expected, shouldn’t be expected. Show a nice website that counters what many people (want) to badly assume of this merger, what there could be with this merger (adding the best of both worlds), and the great opportunities it could represent with such a merger. That way, not many users will jump out their shoes to join another service because of their dumb anti-MS feelings. I’m really hoping the site/message can really show an example of a WinLive/MSN site and a Y! site combined for the so-called best of both worlds thing.
  2. Keep sites the same for quite awhile – While underground deep in their top secret labs, engineers, developers, etc. from both sides offer their ways of slowly merging properties together. The best things to pull from each site, the new look (possibly?), where to put them, how to do things, etc. All very important matters of a service/content, talked with the uttermost importance. I mean one bad site tossed together could mean the end of the 2, if people really don’t like where it’s going.
  3. Finalize it. Offer the best public beta out of it as possible. NONE of those crappy betas that will instantly make people assume the worst is to happen already. Actually, just give practically what the final copy will be, let people give their feedback, fix it, and release it.
  4. Slowly bring Y! branded sites into WinLive/MSN – This is the really hard part. Transitioning is never easy. Expect server failures, a long while to update each and every single account, and other issues. Issues like Y!’s music DRM’d content (that won’t work with Zunes), the Flickr site (branding this as Live Photo will kill it!, or putting any new UI), what to do with accounts (keep them the same?) among numerous decisions. It’s up to the 2 guys to make it work right.
  5. At the same time, drop the bad sites, or bad stuff about their old sites. Condense things more, fix up search to be really spectacular, and numerous other fixes.
  6. Finalize the new merged sites. Everything is now working well and good. Many people are very happy. Hopefully this is before 2009.

There you go. That’s the game plan I’m hoping Microsoft will follow. So this could be really awesome if Microsoft plays their cards right. I don’t think they’d be that dumb to mess up the whole deal by knocking down well-loved sites, raising pro accounts higher, or anything like that. There’s a lot at stake if users don’t feel good about Microsoft buying Yahoo!


4 thoughts on “Microsoft buying Yahoo! – Good or bad?

  1. @Ed : Thank you. I just checked out your site again, but you might want to fix up the graphics a bit. It caused IE7 to crash on me.

  2. Throughout my research on this topic, I have come to the conclusion that Microsoft will in fact benefit from this deal if it does take place. They will challenge Google for internet supremacy, and hopefully the deal will get finalized soon. Although I agree with you wholeheartedly in every aspect you touched upon, I do believe you left out a big piece of the puzzle. What about the argument that people (so-called experts) are making about smaller start-up companies and the effect the deal will have on them? I\’m not a big "computer guy" and I don\’t read up too much on advances in technology, but at first glance, I do believe that this sounds like a problem. I\’ve read a few blogs and articles explaining that Yahoo is one of the biggest, if not the biggest, buyers of these start-ups and I really wonder if this deal will have that much of an effect. I believe that even though Yahoo does buy quite a few of these "cheaper" (under $50 million) companies, there are plenty of other companies that can pick up the slack, and entrepreneurs need not worry. There are companies out there such as Amazon, eBay, Disney, and Comcast that are frequent buyers of these start-ups, and with the majority of these companies prospering today, why should there be any worry on who\’s going to buy who? I was just wondering what your take was on the argument over these start-up companies, and if you have any idea on what Microsoft\’s plan is for future purchasing of companies under $1 billion. Thanks again for your insight on this proposed deal and I appreciate any feedback that you wish to leave.

  3. @JBM : Thank you for the nice compliments. I think start-ups will still exist. Just because there\’s a more bigger superpower on the Internet, does not stop web developers from creating new concepts, sites, services, or whatever. Google also happens to be a large buyer of many companies that have contributed to Google\’s success. Yet competition still goes strong.
    Look at sites like Digg and Facebook. At first they were small, but they touched on something so good that they become popular. Even with the Y! merger, NOTHING is stopping people from creating new ideas. It\’s not like Microsoft will not control the whole Internet with this merger.
    Most of these experts are just MS haters. They have nothing better to do but to spread such nonsense and anything to make MS look bad. Competition will not die with the merger. Instead, good things can happen if Microsoft plays their cards right. And with such a high amount of money exchanging hands, you\’d better believe MS & Y! will be working their butts off to show a mega-merger can work, to keep their user base intact, and to show off new combined technology.

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