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Wednesday, June 04, 2008
 This analysis from Rob Hof suggests that Yahoo CEO Jerry Yang's resistance to a deal with Microsoft is not based on deep-seated hatred of the Redmond behemoth, but rather is based on sound reasoning about risks. Such risks include two companies of immense magnitude being hung up and hamstrung by regulatory hurdles, which may result in all or part of the deal being quashed.
Beyond that indication, and some quotes from former associates telling us that Yang is a level-headed fellow, however, we don't get any reports of a clear vision. Bulletin: when it comes to Yahoo, we may never get that report. The "vision thing" seems to elude the company; not really shocking given the amount of time Terry Semel was left running it.
Make no mistake: it's a pivotal time for these two companies. Yahoo's current process of identifying and deepening its strengths in content, web 2.0 apps and contextual media is perfectly sane, and in keeping with its long-time diversity of strengths (the peanut butter thing). But the tea leaves seem to now read that Yahoo is strongly considering an exit from search, or at least a downshift towards letting Microsoft or Google run more of that show.
The end result (partnerships, stakes, cobrands, and no clear resolution or merger) points towards Yahoo continuing to be a vibrant, uneven, diversified powerhouse that some people (shareholders and smart-aleck execs, but not so much users) think of as a big mess. That would be completely in keeping with its history.
The question then becomes, what's Microsoft's vision? Are they really crazy enough to think they can be a strong #2 in search, and other things Google is dominating right now? Will Steve Ballmer turn purple in the face trying to achieve it with only a small piece of Yahoo to work with? Stay tuned.Labels: microhoo
Posted by
Andrew Goodman
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D'oh!
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