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


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 2/10/2015: Qubes 3.0, Linux.Wifatch

    Links for the day

  2. Microsoft-Connected Firm Net Applications Used to Mislead About Vista 10 Share and Mock GNU/Linux

    People who are connected to Microsoft (some being former staff) link to a firm that is connected to Microsoft in order to create the illusion that Vista 10 market share grew to 6.63%

  3. Chairman of the Enlarged Board of Appeal (EBoA) and EPO Vice-President of DG3 Suspiciously on Unlimited Sick Leave After Benoît Battistelli's Unprecedented Attacks on Other EBoA Staff

    Rumours suggest that Benoît Battistelli's affairs at the EPO may have something to do with Wim Van der Eijk's longterm absence

  4. Microsoft's Secret Special Relationship With EPO Illustrates Serious Corruption at Microsoft and the EPO

    A big story about the EPO and Microsoft working in a sort of collusion-type setup so as to serve Microsoft's patent agenda, which involves aggression, even against European software that is Free (as in freedom)

  5. Links 1/10/2015: LFS 7.8, Calculate Linux 15 Released

    Links for the day

  6. The 'Microsoft Loves Linux' Baloney is Still Being Floated in the Media While Microsoft Attacks Linux With Patents, New Lawsuits Reported

    Despite Microsoft's continued assault on Linux and on Android (using software patents, which it still discreetly lobbies for), some figures in the media are perpetually peddling the Microsoft-serving lie that 'Microsoft loves Linux'

  7. The Microsoft Botnet Goes Bonkers and ATMs Running Windows Spew Out Cash

    The terrible security (by design) of Microsoft Windows is causing all sorts of very serious and collectively expensive issues

  8. Black Duck Continues to Pile FUD on Free/Libre Software

    Having spent nearly a decade promoting the fear of Free software licensing, Black Duck now does the same regarding Free software security<

  9. Links 30/9/2015: New Kernels, Nexus Devices

    Links for the day

  10. Links 28/9/2015: Last News Catchup Before Resumption

    Links for the day

  11. Links 25/9/2015: GNU/Linux in Indian Government, NeoKylin in China

    Links for the day

  12. Süddeutsche Zeitung Explains Imminent Federal Scrutiny Against Battistelli's EPO in Germany

    The German newspaper Süddeutsche Zeitung reveals that actions by the German government may be imminent against the EPO's cliquish management, including its ringleader Benoît Battistelli

  13. EPO Managers, Patent Lawyers, Commissioners and Other Non-Technical Personnel Tackle Democracy, Alter Laws in Bulk and in Secret

    The reckless assault on European democracies and long-established laws across Europe are now lucidly demonstrated when it comes to patents

  14. Europe's Acceptance of and Resistance to Software Patents, Courtesy of Corporate Front Groups and Courtrooms Respectively

    A snapshot of recent developments and upcoming developments in Europe, regarding software patents in particular

  15. German Press Explains EPO Investigation Unit (I.U.), Struggles to Openly Speak to the Secretive EPO

    The secretive Investigation/Investigative Unit (I.U.) of the European Patent Office (EPO) is further studied/explored by a recent article from junge Welt, an old and well-established German newspaper (since 1947)

  16. Links 24/9/2015: GNOME 3.18, Fedora 23 Beta, New Firefox

    Links for the day

  17. Translation Needed of Article About EPO Threats Against SUEPO's Elizabeth Hardon

    A call for translation of an important article that may help shed light on the modus operandi of the Investigation/Investigative Unit of the EPO, which works with Control Risks Group (CRG), the 'British Blackwater'

  18. Media Filled With Spin and Lies Amid Microsoft's Admission of Internal Usage (and Modification) of GNU/Linux

    Further analysis of Microsoft's admission that it uses Linux internally and the media's poorly-researched response to that

  19. EPO Management Justifies Censorship (Even of Journalists) Using Its Vice-President Željko Topić

    The Topić connection to EPO-imposed and universally-induced censorship not just of news sites but also sites which speak about the censorship itself, or dare question the integrity of the EPO's management

  20. Changes at Techrights

    A few short notes on how we are going to re-align the site with disruptive trends, notably patents-related

  21. EPO President Benoît Battistelli Compared to Famous Criminals on European Television

    The Belgian TV network featured a show which was making fun of Battistelli earlier this month

  22. Dutch Politician John Kerstens Says EPO Investigative Unit is Called ‘the Gestapo’

    The infamous Investigation Unit (I.U.), which secretly bullies staff of the EPO with notorious interrogation techniques under virtually no oversight, is described on Dutch radio

  23. The European Patent Office's Autocracy Has Proven the Streisand Effect, Amplifying Its Opposition's Messages

    The management of the European Patent Office (EPO) is still trying to suppress negative messages about managerial failures, violations and abuses, thereby serving to only increase media coverage (newspapers, radio, television) of increasingly well-known and widely-covered scandals

  24. IBM is Again Attacking Free/Libre Open Source Software by Pushing for Patents on Software

    A timely reminder that Big Blue is no true friend of GNU/Linux and other Free software projects, just an opportunist that uses the Linux brand and wants to make the platform a commodity (for servers that run IBM's proprietary software and use IBM-branded hardware)

  25. Windows is Dying, Based on my Conversations With Microsoft Windows Staff

    The arrival of Vista 10 heralds the continuation of a trend that Vista 8 cemented, namely an inevitable demise of Microsoft's common carrier (and formerly cash cow), Windows

  26. Microsoft Claims to Have Built 'Windows' on Top of Linux, But Where is the Source Code (GPL)?

    Microsoft cannot rely on Windows anymore, so it takes GNU/Linux code and puts its own brand on it, without even releasing the changes (as per the GPL's requirements)

  27. Dutch Report: EPO Suicides Possibly Caused by Working Conditions Imposed by EPO's Management

    More press coverage about the terrible situation at the European Patent Office

  28. Links 21/9/2015: Tizen 3.0, Red Hat's Results Coming

    Links for the day

  29. European Patent Office Expands Censorship and Intimidation Against Staff as Pressure Mounts

    The management of the European Patent Office (EPO) continues to increase its repressive assaults on EPO staff, essentially blocking access to additional sites which explain what the EPO is really doing and why this is wrong

  30. Patents Roundup: Europe's and India's Software Patents Affair, US Continues to Demote Software Patents With Alice Case

    A roundup of news of interest regarding patents, especially software patents whose impact on Free/Open Source software is exceptionally profound


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


Recent Posts