Microsoft Taking Yahoo To Compete Against Google?
Microsoft just made a bid for Yahoo for 46 Billion with the goal to compete against Google for online ad revenue. It does make sense that if Microsoft wants to compete, they need something much more robust than MSN. However, I wonder if they could properly integrate an internet company like Yahoo into the Microsoft culture. Internet businesses need to remain nimble in order to attend to ever changing end user needs. That is what Google does that makes it so competitive. On the flip side, we all know how long it takes Microsoft to release software. An interview of an ex-employee of Microsoft who moved over to Google stated that while at Microsoft, he worked on code that would not be released in a piece of software for ten years. In comparison, at Google he would write code that would be immediately posted on the Google Labs section of their website and within 24 hours, thousands of users have downloaded and used.
It is not to say that Microsoft is incapable of running Yahoo in the high pace internet manner, but is a matter of will they. I guess we are a ways away from knowing as Yahoo has not even responded to today's unsolicited offer.