Microsoft Gobbles Yahoo

February 2, 2008

My friend Kim asked me my opinion of Microsoft Gobbling Yahoo to help against Google. I’ll give a short answer, because the technical newspapers are full of long answers.

I predict Microsoft will turn Yahoo into the new AOL – bloated and irrelevant compared to what it was or could be. The combined companies will screw it up and lose market share faster to Google than either of them have separately.

Microsoft has the money, but not the brains, to outflank Google. Yahoo also lacked the brains to outflank Google.  Giving the executives of Yahoo more money won’t make them smarter. Giving the brains of Yahoo to Microsoft won’t make them smarter. How do these parts add up to more than Google? They won’t.

Someone will be smarter than Google before long. It just won’t be Microsoft or Yahoo, alone or together.