Looks like Microsoft is tired of waiting for Jerry Yang to stop wasting time, and hurry up with making the deals final. So if Y! doesn’t come to anything in 3 weeks, MS will take it directly to Y!’s shareholders and Y! will be gone in a snap. For much less than $42 billion.
One has to wonder why MS would even want Y! so bad. Here’s my take as to why MS is so impatient and feels the need to get Y!:
- MS is ready to go on- WinLive/MSN isn’t exactly a really strongly liked pair on the web, but there are some bits where MS is obviously excelling at (search and services). But I think the WinLive/MSN team have finally got their heads together, and have probably come up with a solution to make their internet stuff a "real" destination worth going for. They just want to acquire Y! because MS knows that Y! has some goodies like Flickr, better friendlier site design, and some other things that would take MS a very long time to develop on their own. I think the developers/designers have dreamed up the ways to best combine the 2, and can’t wait to finally do it.
- Y! does have some good stuff – Some people (Google lovers) find Y! nothing worth going for. But I know Y! happens to have popular sites like Flickr, Answers, Mail, MyYahoo!, and some other niche sites. Y! in general has a better friendlier-looking web design on their sites, compared to MSN. Y! happens to really popular in the Asian countries. Y! comes 2nd to Google in terms of web search (even though Y! search sucks!). Y! has their own exclusives. Y! Mobile and OneSearch really have something over MSN/Live mobile. So really, there are true strengths that Y! has, that MS does fine worth going for.
- Large score of users : Getting Y! users to actually try the new and improved combination might be difficult, but it will be worth it in the end. Getting new users has always been a toughie for Microsoft (because of a said reputation), but automatically having users pulled in to actually try the new improved stuff out will be easier with an acquisition.
So really, I think MS knows what they’re doing, and going to do as soon as the acquisition is finished. They just have to wait for the acquisition to come so they can implement their ideas and finish up with it. It’s just that Y! is taking their sweet time.
The deal would probably go faster if MS shows what they’ve got, how the combo can work things out, and all the cool stuff that could come together under one umbrella. Plus a sure deal that MS will go for more openness and be cross platform could help too.
I know people have doubts, but I think MS has already a big plan for bringing the two under one umbrella. An impressive plan, that only needs Y! to be acquired. I can’t wait.