May 9, 2008

IT Like High School?

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At least the author of this piece thinks so here. To be quite honest, I have thought many in the IT business have infantile minds so maybe HS is a valid observation. Be that as it may, Ballmer having been rebuffed by Yahoo is now gunning for FaceBook? —

Which seems exactly the way to view the action these days around the Microsoft-Yahoo ordeal. Today’s news: Steve Ballmer has put out “feelers” about buying Facebook in the wake of ending his pursuit of Yahoo. Let’s parse the Reuters story with this perspective in mind.

Microsoft gauged Facebook’s interest in a possible acquisition after the software giant’s failed takeover attempt of Yahoo, the Wall Street Journal reported Wednesday. Steve, frustrated and hurt after being spurned by Yahoo, got out the yearbook, found the most popular girl of the moment, and decided to go for her whether he really wanted to or not.

The newspaper reported on its website that Microsoft’s bankers put out subtle signals to Facebook, the social networking website, to see if it would be open to a full acquisition. Steve didn’t want to be rejected again, so he got his friends to feel out her interest.

So one has to ask what is Microsoft’s motive for either of the acquisitions? The Yahoo attempt made some sense as they had a revenue stream and a vehicle for internet ad space. But Facebook? Yes they have some of the largest eyeballs on the planet but their revenue architecture is leveraged by Google/Yahoo. Were MS to use FaceBook and their own service they face a big revenue hit up front before growth is realized by ad buyers to the MS platform. So if MS just hell bent to buy somebody? ANYBODY?

Did Ballmer even earn a ‘letter’ when he was in HS?

Addendum: This posting from the psumptive mouth of Bill tends to confirm my observation of a Buy Anybody mindset. –

From way over in Indonesia, Microsoft chairman Bill Gates let it be known that Microsoft never needed to buy Yahoo to make headway in search and advertising. It just kind of wanted to.

“We have always felt we could do very well on our own and now that’s the path we are focused on,” Gates told AP in Jakarta on Friday. “The standard strategy for us is to just hire great engineers and surprise people at how well we can compete, even with a company that’s got a strong lead.”

Linky.

Filed under Microsoft, Persons of Interest, Yahoo by Dr. Dog

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