0 Comment(s)
February 19, 2008 at 8:39am
by thecodepounder Plan B: What if Microsoft doesn’t really hope to buy Yahoo at all? Robert X. Cringely presenting, as always, a very interesting theory of Microsoft’s true intentions in bidding for Yahoo.
But what if Microsoft wasn’t serious about its offer? Well then things start to get REALLY interesting.
Unlike Borland, where Microsoft paid a PR penalty (and later scored a lawsuit) for sending limos to the parking lot and interviewing anybody who would get in, by entering a formal due diligence period with Intuit, Microsoft got access to many details, including Intuit’s product plans and employee records. By the time they bailed on the deal, Microsoft had a very good idea exactly which Intuit employees to recruit to both improve Microsoft Money and to hurt Quicken, QuickBooks, and TurboTax.
It is a testament to Intuit that the company survived.
Now jump to Yahoo, where exactly the same process could be in effect. At a minimum Microsoft is forcing competitors to act when they would rather not. If Yahoo succumbs Microsoft will gain exactly the sort of inside information they got from Intuit. Yahoo is a huge company plagued with pockets of inefficiency (pockets of efficiency?). A failed Microsoft bid, even one involving a termination fee, could lead to horrific results for the company. Remember that Yahoo is staggering here while Intuit was at the top of its market and its game.
I’m not saying this is what’s happening, by the way, just that it concerns me. I guess we’ll have to wait and see.
0 Comments
There are no comments yet, be the first by filling in the form below.
Leave a Comment