Yahoo Is Doomed To Marginalization (Oh, And Microsoft Too)

Posted by Equity Private, Apr 25, 2008, 12:15pm

It seems likely that Microsoft's bid for Yahoo is slipping further and further away from possibility. And, if so, what does this mean for the two firms? Growing irrelevance.

Monkey Boy has been hedging for the last week and a half. Microsoft had originally taken a hard line, and I suspect Ballmer's ego will not permit him to raise any bid by much. Microsoft's stock also doesn't look like the currency it was even a month ago. Yahoo, likewise, has been rather heel-digging. Microsoft, to some extent, bet on poor earnings by Yahoo. In fact, they were just good enough to keep the hope of Yahoo's independence afloat. Microsoft then faced its own earnings issues.

I must admit, I am not a Microsoft fan. (I'm typing this on a MacBook Pro, in fact). To my way of thinking Vista is just short of a disaster. The howls of protest that have risen as the phasing out of Windows XP approaches are somewhat remarkable, and somewhat predictable. Microsoft has become unwieldy and rudderless. Their unbridled rage at everything Google smacks of fear to me. Justified fear.

Yahoo, while prone to clever developments (I love Yahoo Pipes and Yahoo Finance is still quite useful), seems to be languishing and struggling to stay ahead of the curve.

A combination of the two would at least create some momentum. Then again, it would also distract the two firms. To me, this looks quite a lot like Blockbuster - Circuit City. An unmitigated disaster if consummated. Slow, blood draining death if not.

We'll see.

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Tags: Microsoft, Yahoo

Comments

Posted by guest, Apr 25, 2008 12:50PM

Oooh, EP. If you ever wanted to throw raw meat in front of the vocal contingent of EP-haters on DB, you could have done nothing better than admitting you are a Mac user.

Let the hating begin!

(Btw, I'm impressed you have the mental flexibility as a PE professional to use a Mac. Most of the psycho Excel jockeys in PE that I know are still trying to figure out what to do with the mouse other than use it as a paperweight for their cheesesteak wrappers. Visual interface be damned, they say, bring back Visicalc!)

- ?

Posted by ep, Apr 25, 2008 12:52PM

"Oooh, EP. If you ever wanted to throw raw meat in front of the vocal contingent of EP-haters on DB, you could have done nothing better than admitting you are a Mac user."

Mission accomplished.

"Btw, I'm impressed you have the mental flexibility as a PE professional to use a Mac. Most of the psycho Excel jockeys in PE that I know are still trying to figure out what to do with the mouse other than use it as a paperweight for their cheesesteak wrappers."

Parallels is my friend.

Posted by diablo, Apr 25, 2008 12:53PM

Finally I'm impressed with EP. Not only good analysis, but she's using a MacBook Pro like I do. I'm also an Excel jockey, and forgot Visicalc a long time ago.

Posted by bittergreen, Apr 25, 2008 1:14PM

Microsoft should jettison consumer software, consumer hardware, worthless internet properties and focus on pumping out a new version of Windows and Office every two years as a commodity product, and declare a dividend.

Posted by guest, Apr 25, 2008 1:20PM

@1:14, that would be one way to speed their demise.

Posted by guest, Apr 25, 2008 1:20PM

Vista? They spent how much developing that bloatware? I will switch to a Mac before I'll ever switch to Vista. It is that bad IMHO. No wonder Billy is retiring. If I spent that much effort and got such a POS product, I would pretty much give up too. I like Office, but consider the most of MicroPatch's other products junk. Even the new version of Office is supposedly worse than the prior version. Like millions of other people, I'll stick with XP and Office 2003.

Posted by Anal_yst, Apr 25, 2008 1:32PM

Simonyl is laughing all the way to the bank (which he gets to via yacht or spaceship).

Posted by Pro_Forma, Apr 25, 2008 1:33PM

EP uses a Mac?

A part of me just died inside. Any other emo / hipster qualities you care to share with us? Do you drink fair trade coffee as well?

Posted by ep, Apr 25, 2008 1:40PM

"Do you drink fair trade coffee as well?"

No, I sneak into the warehouse, pour it out and replace it with Blood Coffee.

Posted by guest, Apr 25, 2008 1:54PM

H&K toting PE VP who drinks Blood Coffee.

ep, when are we going caribou hunting from humvees in the Yukon!?

Posted by ep, Apr 25, 2008 1:55PM

I hate Humvees.

Posted by Pro_Forma, Apr 25, 2008 2:02PM

The CFO at one of my fund's portfolio companies recently got a Mac and has proceeded to totally gay-out the monthly reporting package.

Far too many pastel colors and product photos for my taste. He even inserted a video clip into a PPT deck at one point, before a partner replied all to his email with a clear, consise respone:

"Never again."

Posted by guest, Apr 25, 2008 2:04PM

ep: ever notice that most guys with Humvees have very small dicks? Its their way of compensating. (Like most Republican behavior).

Posted by ep, Apr 25, 2008 2:07PM

"ep: ever notice that most guys with Humvees have very small dicks?"

No. I am never alone with guys with Humvees. I never have occasion to see them nude.

Posted by guest, Apr 25, 2008 2:14PM

MB Pro, with Parallels, Yahoo Pipes, Google Apps...hmm we can add serious tech cred to your financial analysis, legal analysis, and now handgun(?) expertise.

C'mon EP, drop the restraining order and meet me in Lake Como. Don't make me beg!

Posted by guest, Apr 25, 2008 2:32PM

ep: its ditto for Rebuplicans. Ever been with one of them?

Posted by ep, Apr 25, 2008 2:41PM

"ep: its ditto for Rebuplicans. Ever been with one of them?"

I'm not a fan of Republicans. If they don't want me to control my womb, they don't get to visit it either.

Posted by guest, Apr 25, 2008 2:46PM

Do they get to white wash your lungs?

Posted by Anal_yst, Apr 25, 2008 3:15PM

I'm gonna go with EP = non-crazy libertarian here, and a likely no on the lung whitewashing. I suspect GAnalYst has more expertise in this area, but I'd imagine a lung-spattering wouldn't be too enjoyable.

Posted by guest, Apr 25, 2008 4:20PM

EP- You use a Mac, don't like Republicans and began your career as lawyer...... something tells me you would feel more at home in Berkeley than NYC.

Posted by guest, Apr 25, 2008 4:25PM

she's in chicago, not nyc.

Posted by guest, Apr 25, 2008 4:38PM

in colloquial french, a Mac means a pimp.

Posted by guest, Apr 25, 2008 4:40PM

it's a Mec, not a Mac

Posted by ep, Apr 25, 2008 4:43PM

Why is it that just because I don't want someone telling me what to do with my body I must be a Berkeley type?

I'm not sure if its a sign of how polarized the country is, or how myopic you are that these are the only two options.

If it's important, I am fiscally conservative and socially liberal.

Posted by guest, Apr 25, 2008 4:51PM

a Mec is a guy.
a Mac is derivated from the word Maquereau (Mackerel) and, I reiterate, means a pimp.
but they increasingly employ 'Pimp' to designate it.

Posted by guest, Apr 25, 2008 10:17PM

my brother is in the tech industry

knows Ballmer up close

two words

car salesman

Posted by diablo, May 04, 2008 6:05AM

This got to be one EP's smartest posts at DB. Though the reference to Monkey Boy sent me out on a wild tangent (there are so many Monkey Boys), it's now confirmed that Ballmer listens to EP and quickly walked away from this stupid deal. Now the two companies will continue their path to irrelevancy, but in their own separate ways and that's more fun for us. More power to Google!

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