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Date:      Sat, 2 Feb 2008 14:44:55 -0800 (PST)
From:      KAYVEN  RIESE <kayve@sfsu.edu>
To:        Brett Glass <brett@lariat.net>
Cc:        chat@freebsd.org, Erich Dollansky <oceanare@pacific.net.sg>
Subject:   Re: Microsoft buys Yahoo
Message-ID:  <Pine.SOC.4.64.0802021430170.18881@libra.sfsu.edu>
In-Reply-To: <200802020333.UAA03117@lariat.net>
References:  <47A30E1D.4030609@pacific.net.sg> <Pine.SOC.4.64.0802011058160.26188@libra.sfsu.edu> <47A3B9A3.9080505@pacific.net.sg> <Pine.SOC.4.64.0802011755351.8976@libra.sfsu.edu> <4362.76.20.240.110.1201918749.squirrel@www.stelesys.com> <200802020333.UAA03117@lariat.net>

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On Fri, 1 Feb 2008, Brett Glass wrote:
> At 07:19 PM 2/1/2008, jerry@syslog.org wrote:
>
>> I've been through many M&A deals.  MS will be able to successfully argue
>> that the MS+Yahoo! combo does not constitute a monopoly, since:
>> 1) the share of search of the combined companies does not equal that of
>> it's competitor, Google (source:
>> http://searchenginewatch.com/showPage.html?page=3627122)
>> 2) The combination of MS and Yahoo! does not preclude any
>> search/portal/email competitor from entering the market.
>
> Anyone who thinks it doesn't constitute a monopoly hasn't looked at the
> typical user's browser window. Every Windows PC sold today comes with
> MSN as the start page and the Yahoo! toolbar (which claims to remove
> spyware, but spies on you itself and refuses to be removed) pre-installed.
>
> Combining the two will hold the average user, who doesn't even know
> how to change the browser start page and can't tell the Yahoo toolbar
> from the URL bar, completely hostage.

The news called it "antitrust ISSUES," which is interesting.  Obviously,
IMHO, Google's 59-62% (I am still betting they got this 3% boost 
since Dec. 2007) search market is clear counterindication to TOTAL
monopoly, but nonetheless, depending on how one defines the "market,"
there is some concern.  I think, though, that the obvious trend will
be further marriages of broadcast media (2009 mandate of digital
television signals as one indicator) and internet/computing sector
corporations such as the past merger of AOL/Time Warner.  Therefore,
I guess I would tend to agree that antitrust SEEMS unlikely (but I
must acknowledge total ignorance of actual legal technicalities
on the matter and lack of J.D.).

On Charlie Rose last night they were discussing the matter, and it
seems the BIG question is whether Yahoo will acquiesce to the takeover.
To do so would cut against the culture war of Redmond and Silicon
Valley.

>> All of this assumes a few things:
>> 1) Yahoo's shareholders believe the deal represents a good value
>
> Ironically, it's Microsoft shareholders who think it's a bad deal.
> Microsoft's stock dropped like a rock when the offer was announced,
> while Yahoo! stock went up.

Isn't that normal stock behaviors for takeover?

> --Brett Glass

*----------------------------------------------------------*
   Kayven Riese, BSCS, MS (Physiology and Biophysics)
   (415) 902 5513 cellular
   http://kayve.net
   Webmaster http://ChessYoga.org
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