Rumors that Microsoft wants to break up Yahoo make sense to me. Steveo won't let go.
Today, the Wall Street Journal reported that Microsoft has sought out at least News Corp. and Time Warner as partners for picking away pieces of Yahoo—break it up. Microsoft CEO Steve Ballmer apparently still wants Yahoo's search business. If Yahoo won't willingly give it up, Microsoft will just take it.
Such a tactic isn't the least bit far-fetched. Yahoo's board is choking on the company's free-falling stock price, and billionaire Carl Icahn is waging a proxy fight to oust at least some board members. Meanwhile, Yahoo talent is leaping into the icy waters of job uncertainty rather than stay on the listing ship.
Yeah, Yahoo could be picked apart, with Microsoft getting the choice meat—search. I'm mixing metaphors, but there are so many sophomoric, metaphoric angles to this plot, I simply can't contain my enthusiasm. The whole "breaking up" concept is loaded with fun, sophomoric interpretations:
- The jilted lover syndrome, where Microsoft courted Yahoo, which rebuffed its advances. Now, it's time for some sweet revenge; if I can't have you nobody can. I'll destroy you. I'm gonna break you up, baby.
- "Hey hey, you you, I want to be your girlfriend." Yahoo fell into Google's loving arms. That's a relationship Microsoft can't stand not to break up.
- What's good enough for you isn't good enough for me. Microsoft fought the Justice Department over 2000 sanctions that demanded the company breakup. Microsoft wouldn't split into separate companies but it has no qualms about breaking up Yahoo. Oh, the irony is thick.
The Journal positioned the talks with News Corp. and Time Warner as "preliminary and unlikely to result in a deal with Yahoo." Maybe, but the talks themselves are the point. Microsoft hasn't given up on getting something from Yahoo. The goal is no longer is the whole Yahoo but the piece that matters most to Microsoft—search.
I want to editorialize that Journal statement: "Unlikely to result in a deal with Yahoo" now. If Carl seizes control of Yahoo's board, there may be a sudden willingness for any deal and more interest from third parties to join in the pickings.
What I want to know: Why isn't Microsoft talking to Amazon.com? I stand by my long-ago stated opinion that an Amazon-Yahoo match-up looks really good. It could be a whole lot better if Amazon didn't have to assume all that search mucky muck; just outsource elsewhere.
But Amazoo could create other problems Microsoft wouldn't want to deal with later. Microsoft is already fixing to compete with Amazon's hosted data center services, which Yahoo could greatly extend. Amazoo could also tie many existing Yahoo services, such as Messenger, Shopping or even Flickr, to its retail engine.
Whomever the partners, if any, Microsoft isn't done trying to wrestle search from Yahoo. If that means a Yahoo corpse to get search, certainly. The break up plan adds more meaning to the saying, "Over my dead body."
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