OK, talks seem to have fizzled out, but if it had pushed through, or, heck, if it will eventually push through, would a Microsoft-Yahoo! megamerger have made sense? Would it have worked?
Some analysts say it’s a question of if, not when.
Others have pointed out that it wouldn’t make much sense.
Here’s an excerpt from the PC World article:
But the reason the companies would want to join forces — Google Inc.’s continued dominance in online advertising revenue and in Web-based services in general — remains as strong as ever. And it raises questions about what Microsoft’s next move will be to generate a healthy online advertising business and avoid losing even more ground to the flourishing search company.
There are many reasons why a Microsoft-Yahoo deal would have been a bad idea, and some in the industry are breathing a sigh of relief that they won’t have to deal with the complexity it would have wrought.
Critics questioned how the two companies would navigate separate ad platforms and network infrastructures, as well as how they would integrate their disparate corporate cultures. They also said the full union of the companies would take at least two years to complete, giving Google even more time to solidify its leading market position.
May 11th, 2007 at 6:45 pm
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