4 Things That Could Happen If Microsoft Buys Yahoo! – SEO Hong Kong


4 Things That Could Happen If Microsoft Buys Yahoo!

BBC reported Microsoft’s interest in acquiring Yahoo! for $44.6 billion. If this unsolicited offer gets accepted by Yahoo! to form a more potent alliance to challenge Google, I think there are a few things could probably happen:

Loss of jobs
Not only Yahoo! is poised to lose 1,000 jobs by mid-February as published recently, it could even lose much more in an effort by Microsoft to weed out overlapping jobs and emphasize on streamlining in the workplace. That said, Microsoft could also slash jobs in its own backyard especially on under performing product offerings that are not as robust as what Yahoo! offers. While it also happens to small mergers, it’s what typically happens when large corporations combine as one.

Valleywag has a list of top execs who could stay or could go once the deal is in place.

Name of the merged company will be Microsoft-Yahoo!
As if emphatically shouting over the done deal, the name simply retains the identity of both companies, albeit linked together. Like Bristol-Myers Squibb, ConocoPhillips, and WG&A. Though it is possible for the new company to have a new name (owing to Microsoft’s penchant to create multiple brands (MSN, Windows Live, Zune, XBox), this is a long shot move. A name like MicroHoo makes little sense.

Live Search has to go
I agree with Loren Baker’s points that upon acquisition of Yahoo!, Microsoft’s substandard search engines disguised as Live Search and MSN Search will have to be ditched in favor of Yahoo! Search. A robust Yahoo! Search should be the answer to Microsoft’s poor search engine performance. There will also be a great upgrade from Microsoft adCenter to Yahoo! Search Marketing. And since Yahoo! has strong presence in this part of the world, its dominance should not be interrupted by this acquisition.

Popular Yahoo! products will stay
Yahoo! doesn’t only have decent search products that Microsoft lack, but Web 2.0 properties such as Flickr, Upcoming, del.icio.us are so popular that it’s no-brainer to keep them instead of their MS counterparts. Heck, del.icio.us is much, much more popular than Windows Live Favorites (which needs some serious design considerations). Same is true for Live Q&A being no match to Yahoo! Answers.

These are speculations that will definitely not happen until a deal is consummated and there are also deal haters that surround the story so anything is possible.

There were mega deals in the past that involved competitors in the technology sector that promised complementary roles. Some succeeded and some failed. HP and Compaq, AOL and Time-Warner, Sprint and Nextel.

Yahoo! is still pondering on the deal and we may not hear any conclusive answer in a few weeks. Even if it is widely speculated that AT & T and Google are the only legitimate contenders to Microsoft to make an offer, other parties may also be interested to pounce into the opportunity (now that Yahoo! stocks are down until that MSFT offer). As Silicon Alley reports Silver Lake and Quadrangle Partners may also be in the running and Techcrunch says News Corp could also be scrambling to make an offer.

I’ve made my case, so I’ll have to wait and see.


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