So Microhoo or Yahsoft?

[#1]

There's been a lot of hype around Microsoft's bid for Yahoo! and a fair mix of reactions from "Wow! I think they can give Google a good run for their money" to "I'm going to ditch my Yahoo! account if that happens". So, where do you sit? This acquisition is all about Microsoft versus Google. I've said to many people that I have no more of an issue with either Google or Microsoft than most other people do. Of course, each company has it's fair share of fans and anti-fans, but I'm going to try and remain objective. Personally speaking, I think it could be a good move and I know by saying that I open myself up to all kinds of abuse. Although technically Google do not have a real monopoly (we all have a choice to use or not use them), they are in a position that is normally only benefited by companies that do have a monopoly. Who do you go to when you want to search the internet? Who do you "think" has the biggest cross-section of world and user data? Who do you think is in the best position right now to tell any business what you looked at on the internet over the last year, or what your interests may be? Ok, the last thing may not be happening in reality but it could happen... so very easily. Perhaps the biggest thing for me is trust. Generally speaking, the larger a company gets the more powerful it becomes, and it is power that is behind many a good company turning bad. But it's competition that keeps the dark side of power at bay, and there isn't much real competition for Google at the moment. So while many consider them to be trustworthy today, we don't know what's going to happen tomorrow. Competition could create a "we're better for you than them" fight, and the only real winner is us, the users. Google has been excellent at innovating (and in several cases buying companies that have done it for them), and in the past Yahoo! has had its fair share of innovations - remember that before Google came along, Yahoo! was the search engine of choice. I would personally suggest that Microsoft has innovated far less than Google or Yahoo! and have generally bought companies or learned from others. But with Microsoft's weight and Yahoo!'s innovation, we could see someone finally standing alongside Google and punching at the same weight. But we want more innovation please and less copying! Yahoo! have turned down offers from Microsoft in the past, and probably quite rightly given their strength at the time, but their previous year has not been so good and the outlook for the next year is not much prettier, so the timing may not get better for them. At the end of last year I made a statement in a company rally that Microsoft had continued to fall behind Google over the previous 12 months, and that they would need to do something major to at least realign themselves. I wasn't quite thinking of the scale of a $42bn Yahoo! acquisition but I guess it would be a start. So, what do you think? Am I mad? What's good, bad or ugly about this possible deal?