The Biz of Coding

No Yahoosoft - But Terry Semel Keynoting at Microsoft’s Ad Summit

by Ujwal Tickoo on May 7th, 2007

WSJ reported that the Yahoo!-Microsoft talks got stalled. Yet, as Mary Jo Foley pointed out in her ZDNet Blog Yahoo! CEO Terry Semel will be speaking at Microsoft's Advertising summit (SAS). SAS is scheduled from May 7 to May 9 in Seattle. Bill Gates will ofcourse be at the same summit. hmmm… :)

I think the max that may happen is some kind of partnering. Three reasons why a Yahoo!-Microsoft merger is a non-starter:

1. Yahoo! and Microsoft have different cultures. Human Resource integration at the ground level would be a painful issue.
2. Product rationalizations will take a long time as both MSN and Yahoo! are portals with common mail, messaging, and media based offerrings.
3. Management Team integration should be a nightmare.

And while such issues would get sorted out, Google would have powered ahead taking a lead of 2-4 Quarters. In the Internet world that much time could mean the difference between life and death for Yahoo!. Yahoo! and Google operate in Internet time, Microsoft mainly in Windows upgrade time. Thanks, But no thanks, thats what Yahoo! rightly told Microsoft.

POSTED IN: Yahoo