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May 04, 2007

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myzine.com

Microsoft should buy Yahoo its good for both campanies and good for the industry

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David Wrixon (aka Rubber Duck)

There is only really room for three perhaps four global search engines in my view. Obviously Google and Baidu are strong contenders, as perhaps is Yandex. Microsoft is very weak and probably needs Yahoo to have any chance of being in the hunting pack.

In terms of development of products, the Windows OS and Office Applications have probably reached their logical limits for the time being. They have a good revenue stream two to three years out, but after that they are going to be really struggling.

Zune and XBox seem unlikely to be able to plug the gaps. Microsoft needs to be a major "Internet Applications" player to survive. At the moment it is not even in the chase. A merger with Yahoo is perhaps their only serious option.

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