February 11, 2008

Microsoft will pay high price for failing to learn history lessons

John Naughton:

It's the metaphors and similes that get me. It's a shotgun marriage, declared one commentator, 'with Google holding the gun'. Putting Microsoft and Yahoo together, said another, was like trying to produce an eagle from an alliance of two turkeys.

T his is unfair. Microsoft isn't a turkey, but a profitable, boring mastodon that entertains fantasies about being able to fly. Yahoo, for its part, is an ageing hippy who invented hang- gliding but aspired to fly 747s and then discovered that he wasn't very good at it. The mastodon hopes that by employing the hippy it will learn to hang-glide. The hippy's feelings about the whole deal are plain for all to see.

Microsoft's $44.6bn offer of cash plus shares for Yahoo has got everyone in a spin, partly because of its sheer size but mostly because they fondly imagine it heralds an exciting future. At last, they think - something that might stop the inexorable advance of Google toward world domination! If that's what they're hoping for, then this ain't it, alas. This isn't the opening of a new chapter in the history of the computing business, but - as John Markoff observed in the New York Times - 'the final shot of yesterday's war'. And even if the merger does take place in a reasonable timescale - and if it can be made to work - it won't make much of a dent in Google.

Posted by jez at February 11, 2008 8:35 AM | Subscribe to this site via RSS:
Posted to Business | Current Events | History