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Yahoo and Microsoft

Anyone who has ever purchased a car
knows that you always reject the first offer. There is almost a sense
of disgust that the offer was even put on the table. But the bottom
line is that both parties know the outcome that they desire. This is
the sort of camel trading that is now playing out in Microsoft’s bid
for Yahoo. The problem for Yahoo, is, they don’t know what they want.

I am not a connoisseur of the search
industry. But from everything I’ve read, and or heard about Yahoo,
this is a company in disarray. (See this article
to get a sense about the company’s current state.) If Yahoo could
isolate the areas of its business were they are great, and tops in
the industry, shutter new projects, reduce cost, and focus on their
customer’s needs, they could delay Microsoft’s bid long enough to
achieve their desired outcome. But they must articulate what it is
they want. (Has anyone heard a focused plan and strategy from any one
of their executive management?)

As of February 11th 20008,
it seems the only thing Yahoo is concerned about, is remaining an
independent company that stays out of the clutches of Microsoft. The
question remains, is this enough of a viable long term business strategy?

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