An anonymous friend from college points out an interesting aside:

There has been lots of buzz about the battle royale between Microsoft, Google and Yahoo. For
all the jockeying, it’s an interesting
coincidence that all 3 are back to where they started from 12 months ago.

To a buy & hold investors, nobody in this group impressed much:
>

Msft_yhoo_goog

>
I actually have a fascinating piece of intel about the Yahoo! deal, but I cannot release it til Monday. See this space then for a shocker.
>

Microsoft_yahoo_takeover

Category: M&A, Technical Analysis, Trading, Web/Tech

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

21 Responses to “Performance Review: Google vs. Micro-hoo”

  1. Paul in NYC says:

    I just glance at the fish cartoon and say ‘yup’. And AOL hiding behind Google? – nice touch.

  2. Barry,

    This deal demonstrates how poorly Microsoft is really managed. Didn’t MSFT have something close to $30 billion in cash during the dotcom implosion? Why didn’t they buy Yahoo then?

    MSFT could have bought Yahoo for between $5 and $7 billion in 2001-2002.

    This deal will be disaster.

  3. Bob says:

    Yahoo will agree to be bought by Google to fight MS?

  4. mappo says:

    Shouldn’t that AOL fish be floating belly-up?

  5. Paul in NYC says:

    Apparently the cartoon was drawn before the Time Warner fish showed up.

  6. GreenMachine says:

    This cartoon is completely inaccurate. Look at market cap and how each company makes money. Mr. Softy should be the bloated, gigantic killer whale, while Google is more of a shark or dolphin.

  7. techy says:

    GreenMachine..

    I think the cartoon represents internet business size, not company size.

    any guess what may be Barry’s Intel??

  8. lbl says:

    So Microsoft, that self-proclaimed giant of technology and innovation, wants to be in the advertising business selling tiny little URLs and icons on people’s monitor.

  9. worth says:

    Let’s play “reading too much into it”: I’ll start it off by calling attention to the fact that BR referred to it as the “Yahoo deal” instead of the “Microsoft” or “Microsoft-Yahoo deal,” and I’ll couple that with YHOO’s rumored board meeting today to discuss it, and conclude that they have or will vote to reject it.

  10. Ali Saygin says:

    The board will reject it and some shareholders will press on creating more trouble for the YHOO stock. Best time to short it now.

    Yahoo is such a poorly managed company. They were the most popular portal and yet the most inefficient search engine. Lack of innovation whatsoever. Merging with MSFT would have made the whole thing even uglier, but definitely more profitable. With that most of the free mail market would be gone to MSFT, with more hooks in place for next generation MSFT products which I suspect will be on the web-based OS’es as a counterpart to Google-OS.

    Google is becoming a monster itself too which is taken a free ride by many for no reason. However they paint themselves as the white sheep in a very muddy barn. I look forward to seeing small, new and innovative players to the new web

  11. Max says:

    Christopher Laudani,

    yeah, MSFT is such a poorly managed company – that it is the leader in cap, market share, sales, profitability, survived technology busts big and small intact and stronger than ever, its profits growing at the fastest pace, etc…

    The anti-MS bias here is ridiculous. MS will always be the leader, and once it get Y! the party will be over for Google.

  12. techy says:

    Max..

    i agree that MS has not done too bad.

    but apart from their monopoly in OS which lead to monopoly in office applications, the only other thing i can give credit is their development tools and to some extent their database(sql server).

    other than that they have burned money in everything else they tried: Web, zune, xbox etc..

    for shareholders that stock is worse than a bank savings account

  13. kk says:

    Max, I agree that MSFT has done many things right, but their vision for the web sure was flawed. How they let GOOG and YHOO get a foothold on search was a huge $$$ mistake. In hindsight, listening to Gates talk about the web 12 or so years ago, and comparing his vision to today’s reality is almost painful. The irony in all of this is that IBM’s miscalculation with the PC gave birth to Microsoft, just as Microsoft’s miscalculation about the web gave birth to Yahoo! & Google.

    I agree MSFT is a cash flow machine, but it could have been so much more with a little more vision. Buying YHOO here seems so anticlimatic and disapointing.

  14. PeterR says:

    BR:

    “I actually have a fascinating piece of intel about the Yahoo! deal, but I cannot release it til Monday. See this space then for a shocker.”

    Yo, Barry! What a coy ploy of secrecy!

    So much for free speech, bull disclosure (intended), and self-less-ness!

    Have a good weekend sitting on your private information, so to speak, and, yes, my shoulder is healing up quite nicely thank you.

  15. Ross says:

    Shouldn’t that post be changed to What’s up with Micro-Hoe, as in call 1 800 I want to be a hoe?

  16. Eclectic says:

    Barringo,

    I may bleed to death before Monday from knawing my fingernails to the bone.

    Hahahaha!

    Oh, the burden you must have to carry over this long weekend!… Oh, the humanity of it all!

    To be able to read Sunday’s papers now and not read ‘em to us until Monday.

    As taunt a psychological drama as you’ve ever produced!

    My rectum is so tight, it may take me 6 weeks of negotiation just to convince it it ain’t been sewn shut!

    I have a strange sense of a vision of: Oswald’s still eating his chicken wings in the depository window; the Japanese Navy’s frozen mid-ocean, pre-strike, Pearl; Dewey’s a cinch over Truman; Sub-prime is still contained; Napoleon asking “Where’s this Waterhoo place?”; John Wilkes Booth is climbin’ the stairs; and the Hindenburg is still circling Giant Stadium.

    It’s too much for me. I can’t take!… I just can’t! I’m out of nerve medicine.

    I won’t take a b-r-e-a-t-h until I crack open my copy of TBP Monday!

    It’s the biggest piece of news I’ve every waited for.

    Don’t let us down, Barringo. I hope it’s big, big, big.

    Make us know it, Monday morning! Don’t let us down. Dear merciful God, doN’t!!… Please don’t!!

  17. Eclectic says:

    I ain’t kiddin’ Barringo…

    You’ve got me trembling like a dawg crapping on a rattlesnake.

  18. Greg0658 says:

    I’m rolling over laughin
    (-;
    good one eceltic

  19. Eclectic says:

    Thanks Greg.

    You know… it would be a difficult conflict of interests for the dawg.

    Can’t you just see him, all hunched-up and doing his business, and then he realizes…

    (sing songy)

    “Hark, what’s this I se-e-e?…
    …A big ole diamond-back sleep-in’ un-der me.”

    Now, here’s the problem as I see it.

    -The dawg might decide to quit but still get bit anyway.

    -The dawg might *want* to quit, but not be able to… and get bit anyway.

    -The dawg might deposit a quiet one right by the snake and not get bit (seems a tad low in probability, you reckon?).

    -The snake might be a fake one (they can fool the best) and so the dawg’s trembling posture would’ve been unnecessary, but still unknown to the dawg.

    -The worst of all situations would be if the dawg wanted to stop, but couldn’t and then accidently dropped one right on top of the snake.

    I know one thing.

    Before you take a hunch-up, you’d better know if you’re on top of a rattlesnake. I think the dawg might get a good education in site preparation.

    And I know something else. Where else, except on TBP, can you get this type of high quality psychological drama and parody?

    And, who else can give it to you as good as… me?

  20. bt says:

    News leaked out that Yahoo board decided to reject Microsoft’s offer. Apparently they think the offer is too low: http://www.msnbc.msn.com/id/23084127/. I guess we will find out more details on Monday morning. Thanks Barry for not sharing your news with us.

    A little of reading around the web I understand a company cannot outright reject a takeover offer for reasons other than “undervaluation.” If they have other reasons not to be absorbed, we get a hint of that when we hear their real price. If that price is higher than what it is, we know they are not interested in being taken over.

    Microsoft is already offering way too much for Hoo. A 60% premium for a company that was already overvalued and with sagging earnings and marketshare is too much premium. I hope this deal doesn’t go through.

  21. Newlook says:

    Isn’t it cute that the best/freely available graphs still come from yahoo finance.