EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

08.01.09

The Ugly Reality of the Yahoo-Microsoft Deal

Posted in Antitrust, BSD, Google, Microsoft, Search, Servers at 7:18 pm by Dr. Roy Schestowitz

“Bartz says search engine Bing unlikely to make significant mark”

MarketWatch (June 2009)

Scary face

Summary: Analysis of the impact of the big deal, which may still get blocked

SEVERAL DAYS ago we explained that Yahoo! had been seized from the inside in the sense that people who are loyal to Microsoft escalated up the ranks of the company while those who acted as barriers got pressured outside the company. Technically, it was a proxy fight (see the links at the bottom for necessary background). Linux should protect itself from similar dangers, which for the most part it does, but Novell’s participation in development was never particularly helpful [1, 2, 3, 4, 5, 6, 7, 8].

“We just lost a search engine by this deal. It’s sad.”
      –Pamela Jones, Groklaw
The following links are mostly ‘borrowed’ from Groklaw, as they very nicely illustrate the stupidity of signing that search deal with Microsoft — a deal which puts terrible propaganda in place of Yahoo! We wrote about many other issues with Bing.

According to APF, Ballmer said : “It is a win-win strategic partnership and it is a win-win deal from my perspective… Together we can create economic value that’s going to benefit Yahoo! shareholders and Microsoft shareholders.”

So why did Yahoo’s stock fall so sharply?

Pamela Jones inquires: “What if you are not a shareholder? We just lost a search engine by this deal. It’s sad.”

This is not final however. That deal may still be blocked based on the following analysis from the Wall Street Journal.

The new Internet-search venture between Microsoft Corp. (MSFT) and Yahoo Inc. (YHOO) is likely to face considerable scrutiny from federal antitrust regulators, according to government officials and analysts.

The Justice Department will look at the deal carefully to be sure it doesn’t harm competition by allowing two top Internet companies to team up.

Bloomberg has the article “Yahoo Chief Gets ‘No Confidence’ Vote on Search Deal.” This states the following:

“It’s a tremendous vote of no confidence in Carol Bartz,” said Larry Haverty, a portfolio manager with Gamco Investors Inc. in Rye, New York. The firm manages about $20 billion, including 1.6 million Yahoo shares. “This is anything but a boatload of cash.”

It’s terrible, and it is suggestive that accusations of Bartz “selling out” have a substantial basis to them. It remains obvious who the winner and who the loser is in this deal. Here is how one person put it on the Charlie Rose show.

CHARLIE ROSE: Is this going to work?

STEVEN LEVY: It has a lot of hurdles. I think the upfront money really isn’t the key to Yahoo! The key is, Yahoo! is disbanding their search team, their engineering, and disbanding the team which built their advertising engine to sell ads on search. Now, these happen to be some of the most important aspects of engineering at a company there. And really, if Yahoo! wants to be a top Internet company, it has to have the engineering chops to keep doing that.

So, it’s going to miss out on that. And it will save money by not hiring — having those people to pay, but those are the people you want in your company.

[...]

And the big problem here is that Yahoo! really — they kind of walked away from the most interesting fight on the Internet right now, which is search. And they handed it over to Microsoft for less than any of the previous deals that were on the table. The four real deals that were on the table going back to the $45 or $48 billion offer in February of 2008, the revised search deal that Microsoft offered, which included $8 billion to buy 16 percent of Yahoo! and $1 billion payment for the search part of the business. The Google deal that got squashed, that guaranteed $800 million in revenues. This deal was the worst of all the deals.

To add to those claims about disbanding of engineers, one of our readers warns that “it looks like Microsoft gutted Yahoo and is keeping the outer shell. If PHP and FreeBSD developers were really the target, then this does close to maximum damage because Microsoft was able to eliminate the employment protections in case of buyout.”

Looking back at the past year and a half, this was an ugly saga filled with bullying and cronyism. Yahoo! has only softened because a former Microsoft partner was put in charge of Yahoo! and the board of directors too became saturated with those who were in cahoots with Microsoft. That’s how proxy fights are done (background below).

Related posts:

“Yahoo will do perfectly fine even if it doesn’t strike any type of deal with Microsoft, Yahoo CEO Carol Bartz said Wednesday.”

IDG News Service (June 2009)

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

What Else is New


  1. The EPO's Dutch Scandal Leaves Battistelli and His Cronies on the Run

    EPO management is making concessions and issues statements which admit defeat, allowing the staff union to continue its activities



  2. Microsoft Won't Let People Wipe (Off) Windows But Happily Wipes Android, Wipes Android Apps Through Cyanogen and Blackmailed 'Partners'

    Microsoft's obscene double-standards leave Android and Linux between a rock and a hard place



  3. Links 26/3/2015: GNOME 3.16 Officially Released

    Links for the day



  4. Links 25/3/2015: India Moving to Free Software

    Links for the day



  5. Another Reason to Boycott UEFI: Back Doors or Crackers

    UEFI makes computers more prone to infections, according to some security experts



  6. The EPO's Administrative Council is Under Increased Pressure to Rein in and to Finally Stop Benoît Battistelli

    The EPO's Administrative Council (AC) is about to have a meeting, so the Member States' delegations are urged to call for action



  7. IRC Proceedings: February 22nd - March 21st, 2015

    Many IRC logs



  8. The Latest Microsoft Attacks on GNU/Linux and Free/Libre Software

    Microsoft is still hiding behind the façade of 'love' whilst actively attacking GNU/Linux and Free software from many directions



  9. Attempts to Disrupt Android by Pushing Microsoft Software Into It (Using Patent Blackmail and Cyanogen)

    Microsoft's Android coup d'état is succeeding owing to public apathy and poor comprehension of what Microsoft really is up to, partly due to media misdirection



  10. Links 24/3/2015: WebKitGTK+ 2.8.0, Black Lab Linux 6.5

    Links for the day



  11. Concerns Over Željko Topić's Alleged Powerful Links in Croatian Diplomacy

    Rikard Frgačić explains the powerful connections acquired though Ivan Šimonović, who is himself connected to EPO Vice-President Željko Topić



  12. Benoît Battistelli's EPO Comes Under Fire From Prominent Figures Who Are Key EPO Stakeholders, Expect Battistelli to Resign 'in the Longer Term'

    The ‘reign of terror’ which is primarily attributed to Battistelli and his cronies may be about to end; the Luxembourg parliament approves the Unified Patent Court



  13. Benoît Battistelli's EPO is Under Attack From French Politicians Yet Again

    More EPO interventions -- this time from France -- target Benoît Battistelli over his abuses and take it up to Eurocrats for political actions



  14. Bribes and Extortion Help Turn Android (Linux-powered) Into 'Microsoft Android'

    A strategy involving harassment and bribes drives large Android players into Microsoft's arms (PRISM and lock-in), much to Google's (and users') detriment and beyond regulators' range of visibility



  15. Microsoft-connected Black Duck Software Created by Microsoft Marketing Man as an Anti-GPL Operation, Admits the Management

    Black Duck "was founded [on] the idea ... to keep GPL-licensed code out of corporate codebases entirely," according to a new report



  16. Links 23/3/2015: Linux 4.0 RC5, Kubuntu Celebrates Ten Years

    Links for the day



  17. Microsoft Admits Lying (or Deceiving) About the Cost of Vista 10

    After much hype in the press about Windows being 'free' it turns out that Microsoft just lied yet again, leaving that lingering perception that Windows is as inexpensive as GNU/Linux



  18. Politics of Blackmail at the EPO

    Comments serve to highlight the role of bribes (or contrariwise blackmail), as allegedly exercised by the current management of the European Patent Office



  19. Benoît Battistelli's EPO Comes Under Attack From the British

    A British MEP criticises Battistelli and the management of the European Patent Office (EPO) while Baroness Lucy Neville-Rolfe, UK Minister for Intellectual Property, gets closer to Battistelli in a tactless effort to improve relations



  20. The Royal Norwegian Department of Labour on the Right of European Patent Office (EPO) Workers to Strike

    The role of bureaucrats from Norway in defending (or not) the rights of EPO workers -- rights that the EPO's management is actively trying to deny and punish for



  21. Michael Silver Back to Acting as Gartner's Microsoft Agent, Promoting Vista 10 Based on False Promises

    Vista 10 in the headlines as its marketing propaganda zones in on false perceptions around cost, aided in part by longtime foes of GNU/Linux such as Gartner, especially its Microsoft-embedded elements (Michael Silver and co-workers)



  22. Despite Media Propaganda About Security, Microsoft Windows Remains the Least Secure Operating System, by Design

    Amid highly misleading security-centric reports that rely on Microsoft's bogus number of vulnerabilities (Microsoft already admitted hiding many of them) Techrights presents recent news about Windows 'security'



  23. Canonical Goes to Bed With Company That Sues Linux Using Software Patents and Copyrights (Through SCO)

    Despite Microsoft's continued assault on GNU/Linux, Canonical is foolish enough to give Microsoft control over many Ubuntu instances



  24. Links 22/3/2015: GNOME 3.16 Shaping Up, LibrePlanet 2015

    Links for the day



  25. Microsoft Hates Linux - Part VI - Propaganda Wars Against Free Software Facilitated While Media Control is Secured and Abused

    How Microsoft systematically lies to the public, including decision-makers and officials who can be tricked into choosing proprietary software, thinking it is in fact "open"



  26. Microsoft Hates Linux - Part V - Dumping and Surveillance to Counter GNU/Linux Insurgence

    Microsoft makes false claims about future versions of Windows (with more surveillance) becoming 'free' in order to stop migrations to GNU/Linux



  27. Microsoft Hates Linux - Part IV - Deleting, Attacking Android/Linux From Within

    Microsoft 'loves' Linux so much that it is trying to get on top of Linux and then delete Linux



  28. Microsoft Hates Linux - Part III - Abducting the Competition (Android)

    How Microsoft tried to destroy Android using a coup d'état approach, just shortly before getting caught, then retreating and rewriting the public record



  29. Microsoft Hates Linux - Part II - Patent Lawsuits Against Android/Linux Still Going On, New Ones Filed

    Microsoft and Intellectual Ventures are suing Android companies using software patents while some Android vendors settle by becoming slaves of Microsoft



  30. Microsoft Hates Linux - Part I - The UEFI Attack on GNU/Linux

    Microsoft's highly abusive tactics against GNU/Linux live on in UEFI form, dispelling any myths that someone may still cling onto regarding a 'reformed' Microsoft


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts