Is Microsoft's Bid for Yahoo A Sign of Failure?

Possibly, according to this piece in the New York Times.

Microsoft's $44.6 billion bid for Yahoo, pushed by Mr. Ballmer, was hostile. And during a conference call Friday with analysts and in a subsequent interview, he never once uttered the word "Google," referring to the Internet search giant that has humbled Microsoft only as "the leader" in the online world.

Mr. Ballmer, 51, is a famously fierce competitor. To him, failure is never an option. "If we don't get it right at first, we'll just keep coming and coming and coming and coming," he said in an earlier interview.

Microsoft's bid for Yahoo is thus a tacit, and difficult, admission that the company did not get its online business right. The bid also represents a sharp departure from Microsoft's well-thumbed playbook of building new businesses on its own. In the past, when Microsoft moved beyond its stronghold in desktop computer software -- and into areas like video games and data-center software -- it has done so mainly with in-house investment, patience and tenacity.

Tags

More like this

I've been holding back on this one, but it is time to speak out.  On November 2, 2006, href="http://today.reuters.co.uk/news/articlenews.aspx?type=technologyNews&storyid=2006-11-02T230517Z_01_WEN9025_RTRIDST_0_TECH-MICROSOFT-NOVELL-BALLMER-DC.XML">Microsoft and Novell announced a deal.  …
Sun to Buy Swedish Software Firm for $1 Billion: Sun Microsystems, the large American seller of open-source software, said Wednesday that it would spend $1 billion to buy MySQL, a Swedish company that is the world leader in open-source database software used by Internet powers like Google, Yahoo,…
Steve Ballmer tells reporters that href="http://blog.wired.com/monkeybites/2007/10/ballmer-microso.html">Microsoft will buy 20 companies a year for the next 5 years, paying "between 50 or 100 million to a couple hundred million each."  He also gave his email address, for anyone to use if they…
Best time to appreciate Open Access? When you're really sick and want to learn more about what you have.: * Complete OA still a long way off. One thing I re-learned during this was that it is incredibly frustrating to see how much of the biomedical literature is still not freely available…

I think it's a failure. As John Dvorak has said before, it's a failure to recognize their core business, and that's operating systems, not Internet whateverthehellitis. And also a failure to recognize what the Internet is in the first place.