About Yahoo / Microsoft and an easier way to get $2B in revenue annually

You can read all about the potential acquisition of Yahoo by Microsoft, here for example, where Marc Andreessen writes:
"I think that a Microsoft/Yahoo merger would have practically no impact on any high-quality Silicon Valley startup." (from Silicon Valley after a Microsoft/Yahoo merger)

You should read his whole paper to get his 5 point argument. And I definitely agree with this conclusion:
"Build something of value -- something that people want, and something that will be profitable at the appropriate point -- and the world is yours. [snip...]

Or, reduced to a phrase: the best way to get bought is to not be for sale." (from Silicon Valley after a Microsoft/Yahoo merger)

Good stuff, especially that last conclusion.

Personally, I am shorting both Microsoft AND Yahoo.

I predict that the 'integration' (a word used very loosely) will give both Microsoft and Yahoo a huge amount of indigestion because I think it's basically not possible.

The expected 'leverage' and 'reduction of duplication' will actually be an extended period of executive and strategic distraction, loss of the best people at Yahoo, and in the end, nothing.

I think Microsoft would do better putting those $40+ Billion in the bank and get a nice $2,000 million revenue stream annually, forever.
Posted on February 8, 2008 and filed under Life, Technology.