Is Microsoft Better For Yahoo Than Google Or Apple?

The thought market war over whether or not Microsoft's recent bid on Yahoo will be good or bad for the Internets is far from over. Den Den earlier reported on some pretty stark opposition to the move with some interesting speculation: Could Apple or Google really have it in them to attempt a competitive bid against the Microsoft takeover?

Google leveraged some harsh accusations at the proposal, and some of it had some truth to it:

Could the acquisition of Yahoo! allow Microsoft -- despite its legacy of serious legal and regulatory offenses -- to extend unfair practices from browsers and operating systems to the Internet? In addition, Microsoft plus Yahoo! equals an overwhelming share of instant messaging and web email accounts...

But, the big G loses sight a bit here:

And between them, the two companies operate the two most heavily trafficked portals on the Internet

This coming from the company that, according to most market analysis, owns approximately 65% of the web portal and search engine market. That same report places MS at about 4% and Yahoo at 13%. I hardly think 17% makes for "heavily trafficked," in particular when compared to Google's market position.

Then there's Apple. Sure they have some cash laying around, and they could potentially raise some more, but I wouldn't get my hopes here. Internet services are not part of Apple's core competencies. Given the poor shape that Yahoo is in, I can't imagine the Board of Apple could justify this large of a purchase of a flailing company. Not to mention that whatever Apple brings to the table, MS will top. Ballmer has already said as much. The acquisition would also put Apple in direct competition with Google, a company that Apple has enjoyed a strong working relationship with to date.

People have been latching to "hopeful" word in Yahoo's press release and Q&A concerning the companies Board entertaining other offers. That, of course, assumes other offers come along. I think the reason we've seen such strong reaction from other iconic tech companies is that they don't really have any monetary interest in Yahoo, simply an interest in keeping Microsoft as far on the bottom rung of the Internet ladder as possible, which isn't necessarily an appealing reason to investors to spend $50 Billion.

I'm of the belief that this COULD be good. We all know MS's past. We also know that MS has recently been subjected to another 2 years of government regulation for that past. We also know Yahoo. At least, we used to when any of used it. For anything. Eight years ago. Yahoo needs some invigoration, and Microsoft needs some expertise in the field and market share. This could also signal Microsoft's attempt to dip it's toes into the open-source waters, as Yahoo has been starting to swim in those same waters themselves.

Of course, we have plenty more time to speculate, and only time will tell how this deal will play out. But be sure that we here at Homotron will be covering every minute of the drama!