Why Google Wants Microsoft-Yahoo
Startups and their funders are fretting about a dried-out M&A pool in the wake of Microsoft-Yahoo. But in a thoughtful post, Marc Andreesseen tells them to quit worrying and get on with their work. And while he doesn't say so explicitly, he also does a nice job of explaining why, protestations aside, the Google guys are pumped about this deal.Suppose the takeover bid succeeds. You're looking at probably a year of government approvals, followed by at least a year of integration.
You can't speed up the first part, because that's up to the government, and they don't react well when you scream "hurry up!" at them. And you don't want to speed up the second part, because integrating two companies of the scale and scope of Microsoft and Yahoo is an absolutely enormous undertaking and you want to make sure you do it right, or you're not going to get any of the benefits.
In practice, that will be two years in which both Microsoft and Yahoo will most likely be considerably less aggressive on rolling out new products and new initiatives -- because the key people at both companies will be consumed with the merger.
And here's a variation on the theme, courtesy of Mr. Scoble.
I know I have a bit of a software analyst's bias here -- in the software industry, mergers HAVE worked historically. But I think that's what's relevant here.
CAM
Simon,Australia
E:mavenglobal@gmail.com