Archive >  2008 >  February >  6 Previous / Next

Scripting News, the weblog started in 1997 that bootstrapped the blogging revolution.

Should Yahoo accept Microsoft's offer? Permanent link to this item in the archive.

Mike Arrington is doing a great job of laying out the options for Yahoo wrt Microsoft's offer to buy them out. He's written two pieces that helped put it together for me. Mike clearly has great sources in the investment banking community and among potential buyers of Yahoo, and is actively talking with them. He's got a business lawyer's mind and, as you know I'm sure, he's spent the last few years immersed in web applications.

Bottom-line: Yahoo's three choices are: 1. Tough it out alone. 2. Sell advertising rights to Google. 3. Accept Microsoft's offer.

Mike argues that option 1 would result in shareholder lawsuits and in the end would get Yahoo nowhere because they'd end up selling to Microsoft eventually. Option 2 would enable them to pay a major cash dividend to their shareholders, making up for the lost windfall coming from Microsoft's offer. Options 2 and 3 have the risk of being rejected by government regulators.

A picture named loverss.jpgNow, as a member of Yahoo's developer community, and generally a respector of Yahoo (is that a word) -- I say take the deal. I don't think Yahoo has ever had leadership that has been up to navigating the treacherous waters of tech industry economics and politics. At least with the Microsoft acquisition they would get one -- Ray Ozzie. He's a guy you can sit across the table from and plot something out and he can deliver. I've had many good meetings with Yahoo people, but rarely have they resulted in action. From my own selfish point of view, Microsoft owning Yahoo might mean that Ray makes more trips to the Bay Area (figuratively) and when he sits down, we can talk about new open interfaces and developer programs for Yahoo properties.

I've read most of the commentary on the Yahoo deal, and the other piece that made an impression was Mark Cuban's. He says that Yahoo should accept the Microsoft deal because it would give them the breathing room they need re Wall Street. He argues that the market has always allowed Microsoft to sink resources into developing markets, and that's exactly what Yahoo needs to become the organization that it has been trying to be. Instead, the market treats Yahoo as a comp to Google, but Yahoo doesn't have the economics of Google, so that's, long-term, a losing battle.

There's one more reason I think Yahoo should sell to Microsoft -- the fatigue of the people. The company has been wobbly too long. If they don't take the Microsoft offer it's going to be a long wobbly decline and the shareholders will be right to be angry. Here's their chance to get out, it's time, so just do it.

PS: Open postscript -- Turn Yahoo into The RSS Powerhouse in every way. Build all new systems around RSS. If it isn't RSS it doesn't fly.

Update: Henry Blodget spots a glitch in the Microsoft offer.


Last update: Wednesday, February 06, 2008 at 11:37 AM Pacific.

I'm a California voter for Obama.

A picture named dave.jpgDave Winer, 52, pioneered the development of weblogs, syndication (RSS), podcasting, outlining, and web content management software; former contributing editor at Wired Magazine, research fellow at Harvard Law School, entrepreneur, and investor in web media companies. A native New Yorker, he received a Master's in Computer Science from the University of Wisconsin, a Bachelor's in Mathematics from Tulane University and currently lives in Berkeley, California.

"The protoblogger." - NY Times.

"The father of modern-day content distribution." - PC World.

One of BusinessWeek's 25 Most Influential People on the Web.

"Helped popularize blogging, podcasting and RSS." - Time.

"The father of blogging and RSS." - BBC.

"RSS was born in 1997 out of the confluence of Dave Winer's 'Really Simple Syndication' technology, used to push out blog updates, and Netscape's 'Rich Site Summary', which allowed users to create custom Netscape home pages with regularly updated data flows." - Tim O'Reilly.

Dave Winer Mailto icon

My most recent trivia on Twitter.

On This Day In: 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998.

February 2008
Jan   Mar

Lijit Search
Things to revisit:

1.Microsoft patent acid test.
2.What is a weblog?
3.Advertising R.I.P.
4.How to embrace & extend.
5.Bubble Burst 2.0.
6.This I Believe.
7.Most RSS readers are wrong.
8.Who is Phil Jones?
9.Send them away.
10.Negotiate with users.
11.Preserving ideas.
12.Empire of the Air.
13.NPR speech.
14.Russo & Hale.
15.Trouble at the Chronicle.
15.RSS 2.0.
16.Checkbox News.
17.Spreadsheet calls over the Internet.
18.Twitter as coral reef.
19.Mobs of the blogosphere.
20.Advice for Campaigns.
21.Social Cameras.
22.The Next Big Thing.
23.It's time to open up networking, again.
24.Am I competing?
25.Time to shake up conferences?
26.Bloggers working with journalists.

Teller: "To discover is not merely to encounter, but to comprehend and reveal, to apprehend something new and true and deliver it to the world."

Click here to see a list of recently updated OPML weblogs.

Click here to read blogs commenting on today's Scripting News.

Morning Coffee Notes, an occasional podcast by Scripting News Editor, Dave Winer.

KitchenCam 1.0

Click here to see an XML representation of the content of this weblog.

Click here to view the OPML version of Scripting News.

© Copyright 1997-2008 Dave Winer.

Previous / Next