Microsoft and Yahoo – The Bahoo Bonanza

It seems Yahoo and Microsoft have struck a deal to share revenue on ads to compete with Google.  That’s all fine and dandy, but the real kicker is Microsoft’s search engine Bing will become the default instead of Yahoo’s.  Its sad to see one of the earliest Internet companies lose the integral piece that made them famous, but it was even harder to see Yahoo turn into “altavista”.  Yahoo has been in a state of flux, with the only constant being their decreased market share.

Yahoo is not being bought, but I believe this is the beginning of the end for the company.  My predictions are as follows.

  • Microsoft will eventually buyout Yahoo and their will be a merge of services.
  • Yahoo and Microsoft services will become much more tightly integrated.
  • Yahoo’s mobile application presence will be leveraged (iPhone and Blackberry Apps)
  • Hotmail will get  the boot
  • Yahoo Chat will be replaced by Windows Live Chat (MSN)

Microsoft has much to gain from Yahoo, especially in “Street cred” and cross platform capabilities.  Remember that Yahoo is not a Windows shop, so Microsoft will be gaining invaluable knowledge from the cross-pollination that will take place between the company’s employees. While Yahoo doesn’t innovate nearly as much as they used too, this deal has the potential to get their juices rolling again.

What do you guys think?  If you were Yahoo or Microsoft?


3 responses to “Microsoft and Yahoo – The Bahoo Bonanza

  1. I woldn’t won’t to be in yahoos shoes at this time.
    But this will defineatly be a challange for google.
    I don’t know if bling will be able to make a dent in the search engine market. But other services might stand out.

  2. First MS wanted to BUY Yahoo entirely for I think 50% markup for each yahoo stock… yahoo exec’s said YES YES YES,, CEO and Yahoo USERS said NO WAY!!

    Then the US/Global economy crashed in Oct’ish 2008 and suddenly Yahoo!’s CEO was literallt begging Ballmer (MS) to make the deal again, to buy Yahoo.

    MS said NO.

    NOW… BING comes out, which is just a slightly modified MS LIVE Search with a catchy name and LOADS of advertising behind it…

    Yahoo search was my 2ns favorite, in terms of results. (google ofc being the best, imo)…now BING will be used and this will only LOWER Yahoo!’s market share in search, because Bing really can’t hope to compete with Google ( as google has had all this time and money to put into Datacenters and years ahead of MS in collecting actually web page data and figuring out the best way to rank them.)

    In other words, MS is going to try to obsorb Yahoo! technology, which is based on Open Source/Linux/Free Software, remember, and slowly turn yahoo into a Microsoft based services…

    This is going to KILL Yahoo… technologicoly speaking… the search will fail, as yahoo was 2nd place, now with so called ‘BING’ will fall even LOWER… and make google BIGGER.

    In the mean time… GOOGLE is working on an Operating System to compete with MS and APPLE… this is because of BING.

    Google is afraid of ‘Bing’ and mostly as a personal punch in the face, to google. How dare MS try and step in out Googles massive search engine market share, and spending millions on advertising for Bing, meaning that MS is serious about taking some of Googles pie…

    So, now Yahoo! is gonna loss even MORE market share….and MS now has a MASSIVE company behind the development of a NEW Operating system, (Google OS)…cuz well…thats business for ya.

    More competiton is good for the ecosystem, let alone interesting to follow and read about.

    Also, concidering that Google OS will be given away FOR FREE, should be all the most intersting.

    Also let us not forget, CROSS OVER Linux, (A company that fine tunes and commercialzes the linux WINE Project. so you can run Photoshop, Office and Microsoft games on linux… Im sure Cross Over is going to LOVE whatever Google released, not to mention the already Popular Ubuntu Desktop.

    With the release of Windows 7, making vista sp3, so to speak, will boost MS’s reputation again, and make BILLIONS on all those XP upgrades in schools, offices and at home… so MS is in no trouble what so ever.

    I love it all… keep the goods coming, especially, these mergers of technology with Unix/MS technologies.

  3. Mr. Kukowski, I agree with everything you say except for the notion that “Bing” is a catchy name.

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