Technology | Media | Telecommunications

Saturday, April 26, 2008

A Microsoft Yahoo Merger Doesn't Matter

Microsoft's three-month quest to force themselves upon an unwilling Yahoo! has reached a deadline today. But, in the evolving and Darwinian world of the Global Networked Economy -- does a combined Microsoft-Yahoo really matter?

Furthermore, if Yahoo is acquired by Microsoft, then I wonder if the brand-name will survive?

In particular, what happens to all those broadband service providers who have closely aligned their consumer online business strategy with the Yahoo brand.

An example is the AT&T Yahoo DSL service (previously SBC Yahoo). The thinking behind the partnerships were that telcos understand broadband access, and Yahoo knew how to deliver all the Web services (like email, etc).

Ironically, several broadband service providers had previously partnered with Microsoft, and utilized their MSN offerings, only to conclude that they were a poor choice -- when compared to the alternatives.

Therefore, with Microsoft potentially gaining influence over Yahoo, will those broadband service provides gravitate to their current nemesis -- Google?

My point, will it be better for BSPs to align with the perceived enemy, than to settle for the proven inept? So, perhaps the Microsoft-Yahoo merger really doesn't matter, one way or the other, consummated or rebuffed.

The Microsoft interest in Yahoo is apparently centered upon one key objective -- the lucrative online advertising business and Google's seemingly unstoppable domination of the emerging Digital Marketing Era.

That said, sharing a common failure to innovate seems like a shaky foundation for a successful long-term commercial union.