The Life of a Silicon Valley Rockstar

My varied life… in a nutshell

The saga of MicroHooBook goes on

It’s sounds like a bastard apple product, but MicroHooBook won’t be announced at the Apple developers conference. John Furrier was the first to put 2 and 2 together and get Microsoft’s new strategy; buy only what they need of Yahoo and acquire Facebook.

No one has mentioned what I thought would be the key buzz. Buying Facebook makes Microsoft “cool” again. Arguably not since NT4 has Microsoft really been seen as cool or hip. Vista was supposed to be the trendy infusion Microsoft needed but fell flat. Facebook has so much market momentum Microsoft is hoping the platform can carry the whole company into the hearts of the internets. Buying only a portion of Yahoo gives Microsoft infinitely more value per dollar without the liability on Yahoo’s other properties that wouldn’t really synergize with Microsoft any way. So, the Yahooligans are happy.

This seems like a win all around, even for our buddy Carl Icahn who is likely to see a pretty good short term return on his Yahoo investment. It may not be the whale he expected if Microsoft purchased all of Yahoo but if he chooses to hold his shares he can use that leverage to help drive Yahoo in Asia where it is doing very well.

In the same vein, Kara Swisher published the full communication regarding Yahoo’s view of Microsoft’s view of Yahoo. Doesn’t this seem a little bit like a mouse asking a cat it’s thoughts right before it gets eaten. Yahoo being the mouse, Microsoft is batting at it like a toy prolonging the fun before it moves in for the kill.

Update: Facebook CEO Mark Zuckerberg says Facebook won’t be sold. However doth he protest too much? “You can tell, from our history and what we’ve done, that we really wanted to keep the company independent, by focusing on building and focusing on the long-term.” He’s already talking about Facebook being independent in the past tense. Thankfully John Furrier has more time than me today and is following the story realtime like CNN in Iraq during the “anyone named Bush” era.
Update 2: Facebook has ceased its search for a new CTO to replace Adam D’Angelo. Hmm, under what situation would they not need a CTO?

May 19, 2008 - Posted by Alex | Technology | , , | 1 Comment

1 Comment »

  1. Microsoft will buy Facebook; that’s a foregone conclusion, since Facebook can’t make money and no one will pay as much as Microsoft. Nothing can make Microsoft cool. And when it’s in Microsoft’s hands, it will go the way of Netscape after it was acquired by AOL. Google and OpenSocial are making the Facebook platform obsolete. Yahoo could also be a big player in marginalizing Facebook by socializing the entire web. Walled gardens, whether in the world of social networking or software, are done. It’s all about open source and OpenSocial and not being evil.

    http://www.maxgladwell.com/2008/05/facebook-star-wars-and-greek-tragedy/

    Comment by maxgladwell | May 19, 2008 | Reply


Leave a comment