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. Links 24/8/2016: More From LinuxCon, Uganda Wants FOSS

    Links for the day



  2. Links 23/8/2016: GNOME 3.22 Beta, Android 7.0 Nougat

    Links for the day



  3. The Linux Foundation Gives Microsoft (Paid-for) Keynote Position While Microsoft Extorts (With Patents) Lenovo and Motorola Over Linux Use

    This morning's reminder that Nadella is just another Ballmer (with a different face); Motorola and Lenovo surrender to Microsoft's patent demands and will soon put Microsoft spyware/malware on their Linux-powered products to avert costly legal battles



  4. Not Just President Battistelli: EPO Vice-Presidents Are Still Intentionally Misrepresenting EPO Staff

    Evidence serving to show that EPO Vice-Presidents are still intentionally misrepresenting EPO staff representatives and misleading everyone in order to defend Battistelli



  5. Battistelli the Liar Causes a Climate of Confrontation in French Politics, Lies About Patent Quality (Among Many Other Things)

    Battistelli's lies are coming under increased scrutiny inside and outside the European Patent Office (EPO), where patent quality has been abandoned in order to artificially elevate figures



  6. The Collapse of Software Patents and Patent Law Firms Trying to “Overcome” Alice

    The United States continues its gradual crackdown on software patents (which are viewed as abstract and thus unpatentable), whereas in Europe things are murkier than ever



  7. Apple's Patent Wars Against Android/Linux Make Patent Trolls Stronger

    Apple's insistence that designs should be patentable could prove to be collectively expensive, as patent trolls would then use a possible SCOTUS nod to launch litigation campaigns



  8. Links 22/8/2016: Linux 4.8 RC3, Linux Mint 18 “Sarah” KDE Beta

    Links for the day



  9. Links 21/8/2016: Apple and Microsoft Down, Systemd Spreading to Mount

    Links for the day



  10. Links 20/8/2016: Android Domination, FSFE summit 2016

    Links for the day



  11. Patents Roundup: Trolls Dominate Litigation, PTAB Crushes Patents, Patent Box Regime Persists, and OIN Explains Itself

    Another roundup of patent news from around the Web with special focus on software patenting



  12. The Cost/Toll of the 'New' EPO and Where All That Money Goes or Comes From

    The European Patent Office has become a servant of the rich and powerful (including large foreign corporations) and even its own employees now pay the price associated with misguided new policies (or 'reforms' as Battistelli habitually refers to these)



  13. Links 19/8/2016: Linux Mint With KDE, Linux Foundation's PNDA

    Links for the day



  14. The End of an Era at the USPTO as Battistelli-Like (EPO) Granting Policies Are Over

    The United States is seeing the potency of patents -- especially software patents (which make up much of the country's troll cases) -- challenged by courts and by the Patent Trial and Appeal Board (PTAB)



  15. Battistelli's European Patent Office Goes to the United States to Speak About the UPC and Software Patents

    The European Patent Office is showing its utter contempt -- not just disregard -- for the very fundamental rules that put it in its place and brought it into existence



  16. Turkey Subjected to the European Patent Convention (EPC) But Benoît Battistelli is Not?

    The ‘constitutional crisis’ at the European Patent Office in the context of Turkey, which has signed "the EPC and as such recognises the competence and the decisions of the institutions which have been introduced in the convention."



  17. Links 18/8/2016: EFF Slams Vista 10, Linux Foundation Makes PNDA

    Links for the day



  18. Links 17/8/2016: GNOME and Debian Anniversaries

    Links for the day



  19. Personal Audio LLC and Patent Troll Jim Logan Demonstrate the Harms of Software Patents and Why They Must Never Spread to Europe

    Jim Logan of Personal Audio (a notorious Texas-based patent troll) is still fighting with his bogus patent, having already caused enormous damage with a single software patent that should never have been granted in the first place (due to prior art, not just Alice)



  20. The Patent Microcosm Hopes That the Originators of Software Patents Will Undermine the Patent Trial and Appeal Board

    Now that the actions of the Patent Trial and Appeal Board (PTAB), which have been consistently upheld by the CAFC in precedential decisions, are suddenly being questioned the patent microcosm gets all giddy and tries to undermine PTAB (again)



  21. That Time When the Administrative Council Helped Battistelli Crush Oversight (Audit Committee) and What ILO Said About It a Month Ago

    Things are becoming ever more troublesome at the EPO as the Administrative Council enjoys inaction from the International Labour Organization (ILO), in spite of its role in destroying much-needed oversight at the behest of Battistelli



  22. The EPO's Administrative Council Keeps Postponing Debate About Grounds for Firing the President

    A recollection of events prior to the latest Administrative Council meeting, where Benoît Battistelli's failings and accountability for failing to correct them never even came up



  23. A Surge of Staff Complaints About the European Patent Office Drowns the System, Disservice to Justice Noted

    Self-explanatory graphs about the state of the justice [sic] system which is prejudiced towards/against EPO workers, based on internal reports



  24. Links 16/8/2016: White House Urged by EFF on FOSS, Go 1.7 Released

    Links for the day



  25. Links 15/8/2016: Linux 4.8 RC2, Glimpses at OpenMandriva Lx 3.0

    Links for the day



  26. Clawing Back the Staff Benefits at the European Patent Office (EPO)

    Staff of the EPO is leaving (or retiring) in droves as abusive management continues to be the norm and staff benefits are being taken away or gradually revoked



  27. The Patent Microcosm is Panicking and Spinning Alice/§ 101 Because US Software Patents Are Still Dying

    A look at recent developments in the software patents scene in the United States, with increased focus on (or fear of) the Patent Trial and Appeal Board



  28. 21,000 Posts in Techrights in Less Than a Decade

    This post is the 21,000th post and the next one will make it more than twenty-one thousand posts in total. We are turning 10 in November.



  29. Patent Microcosm Shuts Out the Poor: Unified Patent Court (UPC) Promotion by Practising Law Institute (PLI) Only for the Wealthy

    The people who are profiting from patent feuds, disputes, lawsuits etc. are still trying to muscle their will into European law and they keep the general public out of it by locking down (or pricing out of reach) their meetings where they influence/lobby decision-making officials



  30. The United States Has a Growing Patent Trolls Epidemic as Very High Proportion of Lawsuits Filed by Them

    A look at the high proportion of patent lawsuits that are filed by entities that make nothing at all and thus serve no role whatsoever in innovation


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