Well, one nice thing about having nobody else who wants to post here much is that I can post as much of my trademarked meaninless drivel as I care to.
Today's topic: let's analyze the Yahoo-Microsoft deal. Now that I've had a couple of nights to sleep on it I feel like spewing my thoughts. Had it occurred it would have been the biggest tech tie-up ever. Here are some random thoughts of mine as they occur to me in no particular order. Most is speculation which is probably worth as much as you are paying for it.
- The genesis of this deal was on Wall Street, not the West Coast. For months, if not years, I've been hearing rumors coming from New York that Microsoft and Yahoo were going to, or should, be mating. I surmise that after hearing this for long enough, Ballmer became convinced.
- It's a real dumb idea. There's a huge amount of overlap between the two companies which would not lead to efficiencies or synergies but simply to a bunch of people and code being dumped. A little waste is ok, but this is way too much money to just be playing around with.
- The meta-message coming from Ballmer is that Microsoft can't do the web. He says otherwise; he says he has a plan. That's just BS. Ballmer has always been one of the premier BS artists working in corporate America today.
- Ballmer is clueless what to do next. He has no "Plan B".
- Ballmer apparently thinks that people out there like Microsoft. He's even more clueless about the real world than I can imagine.
- Ballmer's coming in with his top price as his very first offer was—how to say this nicely?—brain-dead beyond belief. Most Third Graders could do a better job negotiating.
- Looking beyond search, the whole company is a mess. Windows Vista is actually a good product, but you'll have to look long and hard before you can find anybody who agrees with you. Office 2007 may very well be the best software the company has ever produced, but you'll never find Microsoft saying that. Windows Mobile has no answer to the iPhone, the Zune is a joke and the XBox just barely breaks even.
- The company reeks "lost". What's the strategic vision? There doesn't seem to be any at all. What's the goal? Why do we need a Zune? What does XBox have to do with Office? Why are they even in the same company?
- There appears to be no upside possible in MSFT stock now. At what point will the stockholders become tired of this?
- Is it necessary for MSFT to do search?
