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Posted by , May 12, 2006, 2:41pm

Henry Blodget on Susan Kalla's (Caris & Co) suggestion in BusinessWeek** that Microsoft taking over Time Warner would be a "great move":

I don't know Susan and it's certainly possible that she was misquoted. If not, however, I have some questions: Where was she five years ago, when AOL bought Time Warner? Would she care to expound on why a proposal frighteningly similar to what has been deemed the most disastrous merger in business history would be a "great move"? Would she like to explain how the same company will be effective at competing against IBM and Linux on one end and sitcom production companies on the other? Would she care to hazard a guess as to where the headquarters of this fantastic new $100 billion corporation will be located? Would she... Never mind.

Ah, Henry. Ever the pessimist (except That One Time.) We'd like to see a Timecro Warnersoft if only because it would be more fun for Carl Icahn to contemplate breaking up. We'd also like to see Steve Ballmer managing Jeff Bewkes.

Other than that... terrible idea!

** We've said it before, but... people read BusinessWeek?

Inaugural "Doh!" Award Goes To... [Internet Outsider]

Comments

Posted by BW, May 12, 2006 4:12PM

** We've said it before, but... people read DealBreaker?

Posted by George, May 15, 2006 1:01AM

The AOL TW merger was a brilliant move... for AOL. They were able to capitalize on their highly over valued stock price and essentially went short on themselves at the peak of the market. All of write downs AOLTW took after the merger were write downs of goodwill AOL PAID in excess of the value of Time Warner, not the other way around. Unfortunately, not many of the AOL guys lived to tell the tale. But if Microsoft is supposed to be AOL in this analogy then, I don't think that it’s such a bad move. Microsoft needs to do something to continue growing or they're growing or eventually their role as the dominant software company will be usurped. A company with $40 bn on its balance sheet has a problem investing its capital.

Posted by Elizabeth Spiers, May 15, 2006 8:52AM

I assume BW stands for "BusinessWeek." Otherwise I'm trying to digest the irony of someone reading DealBreaker to comment about not reading DealBreaker.

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