Monday, June 16, 2008

What If Google Announces A Surprise Merger With Yahoo?

What If Google Announces A Surprise Merger With Yahoo?

Interesting scenario ..... what do you think may happen?

This is in wake of the failed attempt of Microsoft's $40 bid for Yahoo back in Jan 2007. Now they offered somewhat less. ( Source: Bloomberg )

Jerry Wang refused Microsoft's bid for various reasons .... and I'm sure the board of Directors knew why they refused the offer back in 2007 and again in 2008.

Now comes this rumor that Google .... "the Stanford alumni brotherhood" .... is willing to help Jerry out. What if Google is hatching a cunning scheme to shell out some dollars and grab Yahoo (if allowed obviously)?

First the news media will wet itself at the opportunity to work the words "Google", "Yahoo", "Microsoft" and "don't be evil" into one sentence.

Then the Y people will grumble and gripe - all the way to the bank. Online advertisers will scream to the point of hurting themselves - and still spend money on online ads with a keen outlook on ROI. MS will sniff that they were never interested anyway - and go buy whatever other online ad companies they can get. and get splashed in the news as the next up and comers - for doing exactly what they have been doing for years.

GOOG will be crowned as champions - and dolts.

In the end, the earth will somehow manage to keep spinning on it's axis - as some 17 year old kid is programming something that will take everyone by surprise.

Personally .... IF the scenario were to occur I like this hypothetical summary - but I would add that I doubt it will happen.

Yahoo and Google have different cultures (in my opinion) making a merger difficult to survive, and I don't know why Google would take on Yahoo since they do everything they do anyway. What would they hope to gain? Yahoo's registered user list? Maybe their fantasy sports leagues (I haven't seen that on Google yet)? Yahoo's search has been marginalized for years now; I haven't used Yahoo for months. Add to that the complication anti-trust laws may play in such a large merger ..... and it seems like an unlikely 'what-if' scenario.

Plus, Microsoft would probaly file an antitrust lawsuit against them.

How funny would that be?

So, the world will keep spinning and some kid is designing the next big thing anyway.

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