Microsoft and Yahoo: no deal

According to The Journal, the Microsoft / Yahoo merger talks which first took place a year ago (and then again "in recent months", as was discovered today) turned up nil -- that's right, the deal's off. Again. Not that it was ever on. Anyway, apparently discussions are in fact no longer active, and it was concluded that competing is apparently marginally more productive than merging for the two mammoth businesses. (Seriously, can you imagine how much product overlap there would have been between the two?) And trust us, the last thing 75k-large Microsoft needs right now is another personnel infusion of over ten thousand people having a hard enough time as it is keeping up with the business. Bottom line: looks like both companies are on their own against the big G. Best of luck to 'em. [Warning: subscription required for read link]

[brutha-man @ May 4th 2007 7:58PM]

Not to be a hetr...but competition is better than monopolies. MS is big enuff as it is. Competition=better products for us. e.g the Zune

[Traveller @ May 8th 2007 6:46PM]

While I totally agree competition is better, I have to ask... you actually believe Zune's a better product than anything else? ;D

[Paul @ May 4th 2007 8:13PM]

sony wants yahoo =P

[wesrubix @ May 4th 2007 8:16PM]

no surprises here.

Dear competitor, please help me do better,

Love, your competitor.

[Anorexicpillow @ May 4th 2007 8:33PM]

Both are already bloated... but from what I could tell yahoo is the worst.

[rp @ May 4th 2007 8:33PM]

I wonder what Ayn Rand would think about Microsoft?

[Trejkaz @ May 4th 2007 9:07PM]

They should just implement XMPP. Then they wouldn't have to merge and it would still be possible to chat from one to the other.

[Kent Pribbernow @ May 4th 2007 9:44PM]

Pfft! The Blind leading the blind. Or rather, the near sighted leading the far sighted. Microsoft is too mired in its past business model (or cash cow if you will) to grasp the sea change that is reshaping the tech landscape. So its solution, as always, is to buy its way into a new space. Unfortunately for them, nobody wants to hitch their wagon to an old mule.

Sorry Balmer.

[Adrian Williams @ May 4th 2007 10:37PM]

I will say this first ATT and Verizon will buy Yahoo

[nikster @ May 5th 2007 1:54AM]

why doesn't Microsoft just give up and ride out it's cash-cow monopoly to the bitter end? close down all the money-losing distractions that are not tied to the monopoly closely enough to succeed, and invest the cash. that would maximize revenue and stop MS from wasting piles of dollars.

MSN, search, Xbox all got to go.

instead, they are trying to diversify for when the monopoly ends or becomes irrelevant, wasting billions. i like the Xbox like the rest of us but for shareholders it's just dollar bills down the drain. "yeah we'll lose money on it for the first 10 years..." is not a business plan.

[John Doe @ May 5th 2007 3:40AM]

Thank god.

[Toph @ May 5th 2007 3:28PM]

nikster: the Xbox is actually reportedly going to be profitable next year.

http://www.xbox360fanboy.com/2007/05/04/robbie-bach-360-will-be-profitable-in-2008/
http://www.eweek.com/article2/0,1895,2125545,00.asp

Of course, they've sunk so much money into Xbox that it'll be a long, long time until they can recoup their investment. But still, now seems like a strange time to get rid of the Xbox.

When it comes to MSN and Search, though... well, if they want to just sit it out until Windows and Office and whatever are obsolete and they can call it a day, then yeah, it'd be a good idea to sell off MSN. (To Yahoo?) But I think they want to keep trying, and kudos to them for that. No matter what you think of MS -- personally, I think Live Maps is really good, for instance -- It makes everyone try harder. :)

[Bee Hatch @ May 5th 2007 8:26PM]

Google owns everybody and everything. These two should quit pecking around.

[Thomas @ May 6th 2007 3:36AM]

I knew there would be no deal. Why don't MSFT and Ask Jeeves talk about some kind of deal?

[RK @ May 7th 2007 5:30AM]

I don't understand how people say now that MSFT is such a monopoly when there is open source that people are free to use, and online apps for doing almost anything productive, as well as other searches and messaging options. Yet Google along with Gmail is tracking everything people do like Big Brother and they are such the Golden Child. Nothing is wrong with Yahoo but they get the worst shake in all of this.

[Randy Smythe @ May 7th 2007 1:39PM]

This deal may be dead right now but something big will happen this year between two of these three companies IAC, Yahoo, eBay. My take is Yahoo and eBay will get together with Meg running the new company. I think MSFT will continue to be on the sidelines.

[The Truth @ May 9th 2007 9:51AM]

Google sucks big time