Friday, May 04, 2007

Yhoo+MSFT is a no-go

Now this is bad news for all those people running YHOO up today.

There's too much overlap between Microsoft and Yahoo, and to try to merge the company cultures of two large companies like that in general is hard," Hallerman said.

Hallerman said Microsoft would be better off buying an ad network to beef up its own operations, the same way Time Warner Inc.'s AOL has seen its advertising revenue grow following the acquisition of Advertising.com's technology and sales force.
I agree with him 100%. I agree that buying out 24/7 Real Media (TFSM) for $575 million and then trying to compete is a better idea then just plunking down $50 billion to get rid of one of your competitors. You do get YHOOs 27.5% of the advertising pie added to your 11%. You would still be down from Google's 48% though. Now Google buying out Yahoo would be interesting though. Anti-trust stuff would kibosh that deal though.

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