Friday, February 1, 2008

Microsoft-Yahoo Thoughts

I knew Bill Gates pledged to give away billions of dollars, but this isn't quite what I had in mind. To me this in another move of desperation by Microsoft. They haven't been able to compete creatively with the Google's and Apple's of the world. Quite frankly, neither has Yahoo, so maybe its a good match. It was just like when Microsoft overpaid for a minuscule portion of Facebook. Google's CEO says social networking sites are having trouble monetizing. It just baffles me that with all of Microsoft's resources, they can't compete with Google in the creative realm.

For Yahoo shareholders, its kind of a bailout. They saw there company going backwards for awhile, and the share price dropped. I still think they could have turned it around, but maybe joining with Microsoft will do the trick.

Microsoft had to do something, because they have too much money and power to continue to not compete in the search world. I'd say Google is still the best stock to own here, and I'd buy if it continues lower amongst market volatility. And how about a Google-Apple merger? That would be interesting.

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