Bill Gates offers some insight on their rationale behind trying to acquire Yahoo… and everyone is talking about that. What i found more interesting is their approach to provide their software for free to students. Now that is a move that I believe it is going to help them greatly. If you are a student you might not be able to afford $400+ USD software, even some professionals have a hard time gathering the cash to buy the software. Some packages cost as much as $2,000+ USD. So providing Microsoft products for free to students -I believe- it is the right move because those same kids that will spend hours using the software right now, tomorrow will shape the stability of what software is being used at that moment.
In an interview with CNET News.com’s Ina Fried, Microsoft’s chairman explains why the company is giving away its developer tools to students and offers a glimpse at the rationale behind the Yahoo bid.
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We think our engineering combined with their engineering blah blah blah blah… We think their experience blah blah blah…
Translation: MSN Live sucks as a brand. Google won search, Microsoft lost. Google won text based ads, Microsoft lost. Google is trying very hard to win image based ads (Doubleclick), and Microsoft is trying very hard not to lose this time. Yahoo is a recognizable brand. In true Microsoft tradition, if they can’t steal it, copy it or squash it…. They buy it!
40 Billion?! To do what? Take over Yahoo and jack the culture up? How can Microsoft possibly integrate with Yahoo? All they are buying here is a brand. The true talent will bolt once Microsoft is in control, and Microsoft will purge a lot of other employees and management. So there isn’t much human capital in the acquisition. There are no major technology plays either, and Microsoft will squash many stealth mode projects that Yahoo is involved in.
This acquisition brings up memories of eBay buying Skype. Talk about the worst marriage of two companies…