Microsoft and Yahoo

If you haven’t seen it, you should read John Siracusa’s take here (funny in large part because of the quotes). I seem to recall reading that Yahoo is hoping to be bought by Apple instead, but I’m sure Apple will have nothing to do with this.

Since Jobs returned to Apple, he has been relentlessly focussed on turning Apple into a well defined set of individually profitable businesses with clear interlocking synergies (look at this list: Mac, OS X, iPhone, iTunes, iPod, Content Creation Software, and AppleTV — each makes money on its own and benefits from at least two of the other businesses). This is precisely the kind of company Apple is today, the kind of company Microsoft used to be, and the kind of company Yahoo has never been. Apple needs a bunch of ill-defined and not necessarily profitable or synergistic new businesses like a hole in the head. (And so does Microsoft.)

Anyway, I think this deal is the best thing ever. If we’re really lucky, Microsoft will insist on moving all of Yahoo’s services onto Microsoft platforms.

  • Chris

    I bet that the first evidence of corporate integration is the Yahoo! toolbar arriving as a Vista and XP service pack.

    There’s a side to this that I think is part of a greater tragedy. Microsoft has the resources to be any type of company they like, but they continue to play the same game: find a competitor, buy one of their rivals, rename it & market it into a leadership position.

    Why does Microsoft want to be Google when it could be anything? Apple and Google seem to have a good idea about what they want to be and a plan for how to achieve that. Microsoft’s vision is that it wants to be bigger than its competitors and it’ll figure out what that means as it goes along.

  • Tonio

    That’s a very astute observation. I think somewhere along the line Microsoft lost track of its original vision (“Microsoft software everywhere”) and just decided to become some kind of all-consuming thing, but a thing driven by jealousy and greed. Why does Microsoft even need to be a big portal company? Why does Microsoft even need to be a games console? (And why does it need to own the hardware?)