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. Microsoft Crowd Rocks the Media With Misleading Claims and Deliberate Lies About GNU/Linux, Vista 10, and Free/Open Source Software

    A roundup of rigged press coverage, intended purely to serve Microsoft's agenda



  2. Links 31/8/2015: Linux 4.2, LXLE 14.04.3

    Links for the day



  3. IRC Proceedings: August 9th, 2015 – August 29th, 2015

    Many IRC logs



  4. “Conservative” Site Responds (Yet Again) to Misguided “Conservative” Efforts to Derail Patent Reform in the US

    Patent trolls throw stones in glass houses, contributing to their own unpopularity, but some influential “Conservatives” continue to defend (conserve) them



  5. Increase in Lobbying for Software Patents in Europe and Its Trojan Horse, the Unitary Patent (UPC)

    The relentless campaigns to bring software patents into Europe have not stopped and so-called 'unification' -- much like so-called 'trade' deals -- serves to support them



  6. Microsoft Technology Crashes Financial Markets, Again

    SunGard, which is a Microsoft shop, is clearly failing to provide what it calls mission-ciriticaal [sic] solutions



  7. Alice v. CLS Bank (Alice/§101) Comes to Squash Software Patents Even in Eastern District of Texas

    The crackdown on software patents is coming along nicely and the Alice case is now being utilised even in the capital of patent trolls



  8. Apple's Patent Cases Against Android Are Falling Apart, as Acknowledged Even by the Anti-Android Lobby





  9. Links 29/8/2015: NetworkManager 1.0.6, Systemd Merges “su” Command Replacement

    Links for the day



  10. Microsoft Loves Linux to Death and Still Tries to Kill GNU/Linux

    Microsoft's relentless attacks on GNU/Linux and Free software in general (even if it runs on Windows) are so evident that claims of 'love' remain laughable at best (if not infuriating)



  11. Censorship, Self-Censorship and Intimidation Now the Modus Operandi at EPO

    The European Patent Office has ceased even trying to pretend that it respects human rights, including the right to free speech



  12. Patent Practitioners: "The Unitary Patent Might be Able to Open the Floodgates for Software Patents in Europe"

    The EPO-backed Unitary Patent scheme threatens to bring software patents to Europe and along with them a lot of patent trolls from all around the world (especially the United States)



  13. Microsoft Lies About Vista 10 and Increases Microsoft Surveillance (Even Beyond Vista 10 and Into Android, Vista 7/8)

    Windows surveillance expands retroactively, making its way into platforms other than Windows and also expanding to predecessors of Vista 10



  14. Another Suicide at the EPO, Fifth by Our Count

    Yet another EPO member of staff has just committed suicide, leading to the inevitable question: how many people need to die before Battistelli and his minions are out of the Office for good?



  15. Links 27/8/2015: ownCloud Desktop Client 2.0, Red Hat Downgraded

    Links for the day



  16. Microsoft-connected Mesosphere Threatens to Eliminate Free Software in the Datacentre

    Hiding behind a misleading 'open' label while actually backed by Microsoft (and based on new rumours may join Microsoft), Mesosphere wishes to eradicate Free and back doors-free software in large datacentres hosting a lot of physical and virtual servers



  17. Microsoft Aggression Against GNU/Linux Amid Vista 10's Failure

    A look at the recent assault on GNU/Linux in Munich and the likely cause for this assault (in such a timely fashion, too)



  18. Message to LinuxCon Regarding Microsoft: “It is Necessary to Get Behind Someone in Order to Stab Them in the Back.” -Sir Humphrey Appleby

    Jim Zemlin, executive director of the Linux Foundation, helps Microsoft gain influence in the Foundation after payments are received



  19. Market Share Estimates Confirm That Vista 10 Failed in a Major Way

    Confirmatory evidence that Vista 10 is failing in the market about a month after its much-hyped (paid coverage) release



  20. When Microsoft, the Master of Patent Trolls, Complains About Trolls

    Possibly the world's biggest patent abuser and monopolist, which also creates many patent trolls (including by far the biggest one), takes on a far smaller abuser in Court



  21. Letter Signed by Two German Officials Becomes a Microsoft Weapon of Propaganda

    Microsoft and its minions refuse to leave Munich alone, even though the vast majority in Munich are perfectly happy with Free/libre software



  22. Links 25/8/2015: Linux Kernel 4.2 Final RC, KDE Ships Plasma 5.4.0

    Links for the day



  23. Sabine Pfeiler and Otto Seidl Should Take Note as Russia -- Like China -- is in the Process of Banning Microsoft Windows for Security Reasons

    A look at a strange suggestion, signed by Sabine Pfeiler and Otto Seidl, who suggest going back to Microsoft which is basically a spyware company now



  24. Microsoft Windows Leads to Espionage and Blackmail: Latest Examples

    Another news overview, detailing high-profile examples of high-cost Windows deployments (including the cost of litigation and settlement)



  25. Links 23/8/2015: BcacheFS Benchmarks, Blackphone 2

    Links for the day



  26. Links 22/8/2015: Chromebook Gains, GNOME 3.18 Clues

    Links for the day



  27. Alice v. CLS Bank (the Alice Case/§101) Continues to Crush Software Patents in the United States

    Patent scope in the United States continues to be narrowed down as more software patents get their wings clipped



  28. Company of Hype and 'Fanbois' Continues Its Patent Attacks on Android/Linux

    Apple's attacks on Android (using bogus patents) may be soon be escalated to the US Supreme Court (SCOTUS)



  29. EPO Corruption of Patent Boundaries: Business Methods and Algorithms Patented

    How the European Patent Office (EPO) not only turns a blind eye to European law while patenting or granting patents on software but also openly advocates this now



  30. Who's Obsessing Over Patent Trolls in Latest 'Reform' Efforts? Larger Patent Trolls Such as Xerox

    Response to claims that the patent problem is being tackled by focusing on patent trolls and their favourite courts in the Eastern District of Texas


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