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MS Buying Yahoo? Bad Idea, Even At a Discount

timothy posted more than 2 years ago | from the bing-bing-bing-we-have-a-winner dept.

Businesses 141

jfruhlinger writes "Nearly four years ago, Microsoft tried to buy Yahoo, but eventually withdrew the offer in the face of resistance from Yahoo's leadership. This week rumors resurfaced that Microsoft was once again bidding on the struggling Internet pioneer, this time for significantly less money. But even at a discount, it might be a pretty bad idea for Microsoft to get involved in the unfocused, money-losing Yahoo."

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ballmer (2, Funny)

KingAlanI (1270538) | more than 2 years ago | (#37646210)

"scratch that. going to fucking kill ourselves, not google."

Re:ballmer (-1, Troll)

ScreechOnAss (2479570) | more than 2 years ago | (#37646214)

Don't read this... it is a curse...

In 1999, a little boy named James was sitting in his living room and watching television with his mother and father. Suddenly, the phone rang. His dad immediately answered it. To James' surprise, his dad screamed, "We don't want any pizza!" and slammed the phone down. However, a small hand reached out from inside the phone and pulled his dad right into it!

This strange occurrence terrified James (who was now shaking with fear). Then, the phone began ringing again. James, still frightened, told his mom not to answer the phone. However, she did anyway. Then James, sensing danger, ran into his parents' bedroom. From inside it, he could hear his mom scream, "We don't want any pizza!"James knew that she too had been pulled into the phone.

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Now that you have read this (even a single word of it), The Tiki Dolls will let loose high-pitched screeching sounds inside of your bootyass and inflict major amounts of tickle upon it! To prevent this from happening, post this curse as a comment three times.

Re:ballmer (-1)

Anonymous Coward | more than 2 years ago | (#37646220)

this curse as a comment three times.

Re:ballmer (-1, Offtopic)

thunderclap (972782) | more than 2 years ago | (#37646520)

this curse as a comment three times.

this curse as a comment three times. this curse as a comment three times.

Re:ballmer (0)

Anonymous Coward | more than 2 years ago | (#37646442)

I never thought I would pine for the days of GNAA trolls or the Steve Jobs/Taco scat troll.

...this is just retarded, though. Its like the Troll Special Olympics. Seriously: are you mentally retarded?

When I think of CmdrTaco leaving Slashdot, (-1)

Anonymous Coward | more than 2 years ago | (#37646670)

I am reminded of my time spent her chatting with Ol' Kike Thomas whom gibb0r me a boner that just wouldn't quit. I was spending my Summers on Slashdot, and then those became Falls and Winters and Springs, and the same shit just kept rolling out of this soulless peice of shit website known as Slashdot. People went to Kuro5hin, others to Fark, but not the people from NewGrounds. The best (losers) stood their ground on Slashdot, with dicks in hand, just dripping cum awaiting for when Slashdot mattered again that they can get their turn to dip into the cesspool of progress. That day never cum, Kathleen Fent stole Taco's sauce, and now he's gone leaving Slashdot a site who's main page has never exceeded an average of 150 posts since his leaving. Hell, many of the story topics have been under 75 since Taco's absence.

I think that when CmdrTaco left Slashdot, that Ol' Kike Thomas left this site as well. What a coincidence...

Re:ballmer (-1, Offtopic)

Dunbal (464142) | more than 2 years ago | (#37646870)

this curse as a comment, this curse as a comment, this curse as a comment

"MS Buying Yahoo!" rumor time: Here we go again. (0)

Anonymous Coward | more than 2 years ago | (#37646212)

Lots of pontificating about how terrible the very idea is from fat and clueless basement dwellers.

Must be that time of year once more.

Re:"MS Buying Yahoo!" rumor time: Here we go again (2)

blackicye (760472) | more than 2 years ago | (#37646240)

Lots of pontificating about how terrible the very idea is from fat and clueless basement dwellers.

Must be that time of year once more.

How are your Yahoo shares doing? regretting your board's incredibly stupid decision to not sell when they could huh?

Leave it for Alibaba (3, Interesting)

mark_elf (2009518) | more than 2 years ago | (#37646218)

Jack Ma wants to regain control of Alibaba http://money.cnn.com/2011/10/01/technology/alibaba_yahoo/index.htm/ [cnn.com] , makes more sense for them than for Microsoft. I wonder if the MS interest is just to drive the price up for some reason.

Re:Leave it for Alibaba (0)

Anonymous Coward | more than 2 years ago | (#37647142)

Zero chance of that happening. Yahoo holds far too much information about the west.

Who, exactly, is losing money? (4, Informative)

JakiChan (141719) | more than 2 years ago | (#37646224)

Say what you want about Yahoo! but it is not "money-losing". Yahoo! is profitable. Yes, top-line growth has been a problem but management of the bottom line has driven profits UP not DOWN. Bing may be losing money hand over fist but Yahoo! is still bringing in the cash.

I bet the folks who love to keep beating on Yahoo! also kick puppies for fun...

Re:Who, exactly, is losing money? (0)

blackicye (760472) | more than 2 years ago | (#37646244)

Say what you want about Yahoo! but it is not "money-losing". Yahoo! is profitable. Yes, top-line growth has been a problem but management of the bottom line has driven profits UP not DOWN. Bing may be losing money hand over fist but Yahoo! is still bringing in the cash.

I bet the folks who love to keep beating on Yahoo! also kick puppies for fun...

The point was never whether they were "money-losing" the argument was always that the company was _grossly_ overvalued at $44.6B.
And that Yahoo was stupid enough to refuse that offer when it was made.

Re:Who, exactly, is losing money? (2, Informative)

JakiChan (141719) | more than 2 years ago | (#37646260)

Uhm, no. The submitted said in his submission that Yahoo! is losing money. It is not. As much fun as it may be to kick Y! I think one should at least use the facts. MICROSOFT is losing money fast, but Y! is profitable.

Re:Who, exactly, is losing money? (3, Insightful)

Anonymous Coward | more than 2 years ago | (#37646304)

MICROSOFT is losing money fast

You mean the company that made $23 billion last year [yahoo.com] ? Nearly as much in profit as Google's revenue and 3x their profits. 65% more profits than Apple. That company? That company is losing money fast? Really?

Really?

No seriously.. really?

Re:Who, exactly, is losing money? (1, Funny)

MicroSlut (2478760) | more than 2 years ago | (#37646370)

Dude, this is /. If you say SharePoint, they say Windows ME! If you say Dynamics, they say BSOD!, if you say Office, they say Ribbon! I suffered a decade of panics due to poorly written nix drivers and years of headaches putting up with glitches in GroupWise. If posters want to believe that Microsoft is on the brink of failure because IE is losing popularity and Bing has as much traffic as Dogpile, let them. It is the year of Linux on the desktop, for the nth year in a row and 640K should be enough. I have to go recharge my iPhone.

Re:Who, exactly, is losing money? (0)

symbolset (646467) | more than 2 years ago | (#37646452)

Have a Nice picture [businessinsider.com] . And in a few days they report again.

Re:Who, exactly, is losing money? (1)

Anonymous Coward | more than 2 years ago | (#37646478)

You do know that is only for one small division of MSFT that the rest props up? Every quarter some dumbass analysts point to this and that Windows isn't growing more share as fast as it used to (which is a BS stat when a market is saturated). It's selling more copies of Windows faster than it ever has, though admittedly Apple has almost as much market share as it had in the 80s again.

Re:Who, exactly, is losing money? (1)

SuricouRaven (1897204) | more than 2 years ago | (#37646570)

Bing will win.

You just can't compete with the advantage of bundling. Remember that most users are not technologically literate. When they want to find something, they just type it into their address bar. They don't even know properly what an address is. That is why IE remains by a substantial margin the world's most popular browser - not because it's the best, but because it comes installed on every new computer, and most users don't see any reason to try another. In the same way, all those users who stick with IE because it's there are going to end up using Bing. Some of them might not even realise there are other search engines out there.

Re:Who, exactly, is losing money? (1)

Anonymous Coward | more than 2 years ago | (#37646948)

IE remains by a substantial margin the world's most popular browser...and most users don't see any reason to try another. In the same way, all those users...are going to end up using Bing.

You aren't joking, are you? IE comes installed with Windows and MOST users go out of their way to install something else. With a 42% IE market share, how does this fit your "Bing!" theory? Windows isn't gaining market share and it's not possible for people not using Windows to install IE. Good luck with it though, Steve.

Re:Who, exactly, is losing money? (1)

LordThyGod (1465887) | more than 2 years ago | (#37647132)

Sorry but the world is slowly moving past desktops. iPads don't have IE, Android devices don't have IE, etc. That's why MS is in such a panic over mobile. They have lost their leverage in those segments. They might regain some of that, if they can stop shooting themselves in the foot long enough. Desktops won't completely die for a good while, but their relevance slowly erodes.

Re:Who, exactly, is losing money? (0)

Anonymous Coward | more than 2 years ago | (#37647184)

You make it sound like MS just launched Bing and IE and their dominance is imminent. You don't need a crystal ball to guess what will happen when MS starts bundling IE and makes Bing it's default search, you just need to be able to read the news for the last 2 years.

Re:Who, exactly, is losing money? (2)

bmuon (1814306) | more than 2 years ago | (#37647240)

Remember that most users are not technologically literate.

That used to be true. People are getting more and more tech savvy and everyone in the tech industry is aware of it.

Re:Who, exactly, is losing money? (0, Offtopic)

Anonymous Coward | more than 2 years ago | (#37646840)

This man speaks the truth.
The freetards here are so delusional that's sad, very sad.

Re:Who, exactly, is losing money? (0)

Anonymous Coward | more than 2 years ago | (#37646982)

If posters want to believe that Microsoft is on the brink of failure because IE is losing popularity and Bing has as much traffic as Dogpile, let them. I have to go recharge my iPhone.

I thought you were serious about hope for Microsoft until I read the last part. Nice one. I thought you might have been the owner of the Windows Phone 7. I believe he exists...

Re:Who, exactly, is losing money? (0)

Anonymous Coward | more than 2 years ago | (#37646524)

If you are talking about their online services only, then yes, it's losing quite a bit more as it's spending far more then it takes in as revenue from it.

MS and Yahoo both have similar and competing services with the except of search (as yahoo is now powered by Bing). In terms of marketshare, they and google are all big players. In comparison, however, MS is the ONLY company loosing money despite it's large market share. That just shows how inefficient the company is in spending it's money and it's only getting worst as shown in the link below.

http://www.mondaynote.com/wp-content/uploads/2011/05/182-Microsoft-Online-Losses.png

Compared to MS current operations, there is plenty of reasons why they would want to take over Yahoo which is making a profit unlike their current offerings. While it's true yahoo is overvalued, but that's only in a normal sense. To MS, for a price it could easily deal with, this may very well be worth it.

Re:Who, exactly, is losing money? (0)

Anonymous Coward | more than 2 years ago | (#37646678)

Its funny.. how people rush to divide up MS and show it as broken. And when one division of the company does something you disagree with then somehow the entire company is somehow evil. But hey.. this is slashdot, .. aint no zealot like an anti-ms zealot.

Re:Who, exactly, is losing money? (1)

Anonymous Coward | more than 2 years ago | (#37646578)

Microsoft's Live division is a money pit. About $6B in accumulated losses so far. Microsoft even tried paying people to use Bing.

Thankfully, Microsoft sold about 400 million Windows 7 licenses, and the Office upgrade business is very strong. They can continue to throw money into the Bing bonfire, and still make huge profits.

The real problem, is that how would Microsoft make their money back if they bought Yahoo? Microsoft has proven that they don't "get" the Internet. Live Places? Hotmail? Bing? And before that Live Search? Even the transition from Windows Messenger, to MSN Messenger, to Live Messenger was a confusing mess for users.

Re:Who, exactly, is losing money? (1)

TheRaven64 (641858) | more than 2 years ago | (#37646760)

I think the grandparent was talking specifically about the search market. Last figures I saw showed that Bing was still losing money. Microsoft makes insane amounts on Windows and Office (and probably quite a lot on Android now, since they get $15 of profit for every Android handset sold...) which lets them make a loss in a lot of other markets without it making a dent in their bottom line. A few years ago, MSN was making a loss of $20m annually on their UK portal alone, but they were making something like $8bn each on Windows and Office, so the shareholders didn't care. They made a loss of about $700m in their online division in the last quarter. That's tiny compared to the amount of profit they made from Windows and Office, but it's still a lot of cash to be throwing away just to try to reduce Google's market share.

Re:Who, exactly, is losing money? (0)

Anonymous Coward | more than 2 years ago | (#37648032)

They are losing money on BING. If you used your brains you would know that the poster talked about BING and not the company itself.

Re:Who, exactly, is losing money? (2)

airfoobar (1853132) | more than 2 years ago | (#37646272)

I haven't exactly been caring about what they've been up to, but afaik they been selling all sorts of assets and firing swathes of employees to stay profitable... and their brilliant CEO was taking $50 million salary a year... while completely eviscerating whatever was left of the company.

Re:Who, exactly, is losing money? (2)

LordLucless (582312) | more than 2 years ago | (#37646350)

firing swathes of employees

Yes, that is what's known to people like the OP as "managing the bottom line"

Re:Who, exactly, is losing money? (0)

Anonymous Coward | more than 2 years ago | (#37646290)

LOL, I saw the headline and was thinking WTF is he talking about they are consistent earners, of course as far as wall-street is concerned that is the problem.

Re:Who, exactly, is losing money? (0)

Anonymous Coward | more than 2 years ago | (#37646412)

I don't know anything about Yahoo! but puppy kicking is another matter!

Re:Who, exactly, is losing money? (5, Interesting)

Hadlock (143607) | more than 2 years ago | (#37646660)

They're a revenue stream for some hedge fund or conglomerate, sure. You can bank on them having level revenue for the next 2-5 years, but there's no growth left there. R&D got the axe years ago, and they haven't developed a noteworthy product or championed a cause that anyone can remember since free email (yahoo mail) and yahoo maps... which are third rate backwaters these days. All that is left is a bunch of degree mill MBAs looking to pump up the company to sell it to investors... same as AOL. The trade name doesn't hold the glamour or instill the brand pride it did in the first half of the 00's.
 
Sure, profits are UP, but at what cost? Employee morale must be at an all time low, they are hemorrhaging long time employees, the board of directors is directionless and they have had no CEO with a sense of direction since they kicked out Jerry Yang. The soul of the company is dead and the product they sell is a commodity; no one has faith that you could reasonably improve the shareholder value by 20% in five years.
 
They could bring back Jerry Yang, but that would involve scrubbing the entire board of directors to get him back; not likely. Yahoo is circling the drain, investors are looking for a way to cash out without alarming anyone, but nobody is buying, which only drives their stock price lower. So long, Yahoo, and thanks for all the free email!

Re:Who, exactly, is losing money? (0)

Anonymous Coward | more than 2 years ago | (#37646688)

Actually I kick Dolphins for fun.
Don't ask me to explain how I go about it, just accept it, be one with the statement.

The only thing I worry about them buying Yahoo is they might kill off some projects I like.
Oh wait, that is Google who kill off projects they buy.

Hmm, I don't think there is anything wrong with MS buying Yahoo here.
They complement each other a little.
Maybe it will actually get Microsofts web-side profitable since they just throw money in to a shredder, basically.

Re:Who, exactly, is losing money? (3, Funny)

Dunbal (464142) | more than 2 years ago | (#37646876)

I bet the folks who love to keep beating on Yahoo! also kick puppies for fun...

Hey!

Re:Who, exactly, is losing money? (0)

Anonymous Coward | more than 2 years ago | (#37646978)

They are dying. I came to that conclusion when I found a link in their downloads that instead of linking directly to the Android app store, it was an executable with toolbar installers than then linked to the Android app store.

Re:Who, exactly, is losing money? (1)

tukang (1209392) | more than 2 years ago | (#37647020)

Let's look at their net income for the past 4 quarters:

129.60 -- 142.65 -- 210.44 -- 294.09

Their income is consistently decreasing and if they continue on the same path, it won't be long before they do start losing money. There is also no reason to believe that they will not continue on the same path they have been for the past decade.

Re:Who, exactly, is losing money? (2)

thegarbz (1787294) | more than 2 years ago | (#37647266)

There is also no reason to believe that they will not continue on the same path they have been for the past decade.

What's that path? The path that saw them steadily rising since the dot com pop? Suffer through the economic crunch and then hold steady even today as the world's stock markets are plunging? Or the company which has posted an UPWARDS trend in net profits since 2009 and have had a positive trend since 2002?

Seriously let me guess, you're a global warming denier too cherry picking only the stats that suit you to make your argument.

Now let's look back at the figures:
Starting where you left off:

294 -- 213 -- 310 -- 152 -- 142 -- 141 -- 117 -303 (yes negative $303M in 2009). From 2002-2004 they were reporting lower income than now. From mid 2006-2008 they were reporting lower net income than now. Basically look at the data points on a graph and you end up with progressive increase with a few spikes since the dot com bubble collapsed.

Extrapolating is fun isn't it.

Re:Who, exactly, is losing money? (1)

tukang (1209392) | more than 2 years ago | (#37647534)

Everything is relative. If you compare what they've achieved since the dot-com pop against what Facebook, Google, Microsoft, Baidu, Amazon, eBay, Alibaba etc. have achieved, Yahoo simply comes up far short. As for "cherry-picking", I didn't pick some arbitrary period of quarters. I picked the most recent ones.

Seriously, what is Yahoo's future? Which areas do you see them growing in? Where are they leaders? This is why people don't want to invest in Yahoo and its stock price is performing so poorly.

I seriously doubt it. (3, Interesting)

blackicye (760472) | more than 2 years ago | (#37646228)

It was a bad idea then, it's no better of an idea now (and some would argue worse.)

Why not wait another year or two and buy Yahoo for an even bigger discount, something closer to free.

Re:I seriously doubt it. (1)

Pausanias (681077) | more than 2 years ago | (#37646734)

Agreed. Yahoo is around only because there is a % of people who could only be bothered to "learn the internets" once, therefore they are still slaves to Yahoo Groups/Yahoo Mail/all that awful stuff. Most of these people somehow appear to wind up in my kids parent/teacher associations, basically anyone who is technically clueless but needs to organize online stuff. They looked into it once, in the 90s, and now they can't be bothered to learn any of the newer solutions.

Now, Yahoo actually did some pretty cool stuff on the other end, like Pipes is really neat (though I could never get it to work with Google Reader, funny that), and their finance site is actually still probably the best. But overall you've gotta ask yourself, what is Yahoo actually about.

Re:I seriously doubt it. (1)

EdZep (114198) | more than 2 years ago | (#37647136)

I belong to a club that uses Yahoo Groups for organizing. The members like that it functions as a mailing list. And, one feature we haven't been able to find elsewhere, is that events on the calendar can be set up to do periodic auto-notifications via email. We do see weaknesses in Yahoo Groups, and would appreciate suggestions.

Re:I seriously doubt it. (0)

Anonymous Coward | more than 2 years ago | (#37647368)

I mean why can't people just move on to the NEW thing? There's Microsoft and Google which offer innovative features such as email, search, maps, news...or in other words, nothing big that Yahoo didn't do first and is still making money at.

Are we talking about the same Microsoft? (4, Interesting)

Required Snark (1702878) | more than 2 years ago | (#37646248)

"a pretty bad idea for Microsoft to get involved in the unfocused, money-losing Yahoo."

Am I wrong, or is the phrase "unfocused, money-losing" pretty much the definition of the stuff that Microsoft is rolling out these days? SilverLight, Bing, Zune, .NET languages, ...

Re:Are we talking about the same Microsoft? (0)

Anonymous Coward | more than 2 years ago | (#37646282)

Am I wrong, or is the phrase "unfocused, money-losing" pretty much the definition of the stuff that Microsoft is rolling out these days? SilverLight, Bing, Zune, .NET languages, ...

SilverLight, Bing and Zune are terrible products, but .net is a pretty good one. The language is sound, and it entices more developers to use Windows for their primary machine - I typically make applications/daemons on a POSIX platform, but I always prototype in .net because it's simply faster - this equates to an MS license, and several thousand dollars in server licenses because if it's not going to be crunching masses of data (hundreds or more machines) POSIX doesn't even make sense - it's more cost-effective to build in .net for the RAD aspect and keep it on windows in cost of development is factored in. Catering to developers is WHY Windows is the most wide-spread OS.

Re:Are we talking about the same Microsoft? (3, Informative)

Alex Belits (437) | more than 2 years ago | (#37646418)

I typically make applications/daemons on a POSIX platform, but I always prototype in .net

No, you don't.

Re:Are we talking about the same Microsoft? (1)

sydneyfong (410107) | more than 2 years ago | (#37646692)

Perhaps he runs the apps/daemons in Mono. Hah.

Seriously, that sentence alone is worthy of a +5 funny IMHO...

Re:Are we talking about the same Microsoft? (0)

sgt101 (120604) | more than 2 years ago | (#37647110)

Every developer I know wants to use Linux or a Mac to produce code. I think catering for CIO's is why Windows is the most widespread OS.

Re:Are we talking about the same Microsoft? (1)

wmac1 (2478314) | more than 2 years ago | (#37647262)

Zune is a terrible product? Seriously?

Is silverlight worse than Flash?

And why Bing is terrible?

Re:Are we talking about the same Microsoft? (1)

Anonymous Coward | more than 2 years ago | (#37646322)

Microsoft has always been a software company, with a focus on languages (remember, their first product was BASIC). Silverlight is a development platform and .NET languages are, well, languages. Those make perfect sense for a software company to produce.

Where do Bing and Zune fit in? Probably nowhere. But keep in mind that in order to be have successful products, you have take risks. Most of those risks will turn out to be unprofitable, but you don't know which ones will turn out to be profitable beforehand so you have to throw many things against the wall to see what sticks.

Do you want a good example of unfocused and money-losing? Have a look at http://www.google.com/intl/en/about/products/index.html [google.com] ! How many of those things are part of an overall strategy? How many are making money?

dom

Re:Are we talking about the same Microsoft? (1)

darthdavid (835069) | more than 2 years ago | (#37646436)

All of them fit. Google's strategy is to offer a crapload of 'free' services to end users. I put free in quotes because, while the users don't pay Googlef any money to use their stuff, Google does make money off every user. How? By collecting information about them and using it to sell targeted advertising to a bunch of different people. Every service they offer is one more reason for people to stay where Google can track them, which gives them more information to use, which makes their targeted advertising more valuable.

And I'm not really against that as an end user either. Google's generally pretty good about not actually giving identifying information out to 3rd parties and I get plenty of neat stuff without having to pay any money for it. And if there's something I really want to remain private, well I generally don't put it on the internet at all, but if I did I'd certainly avoid putting it up through any of Google's services if there was any choice about it. That's only common sense...

Re:Are we talking about the same Microsoft? (0)

Anonymous Coward | more than 2 years ago | (#37646694)

If all they want to do is give free stuff, why do they keep shut down "non profitable" services? Although to be fair, Google tends to just buy good ideas relabels them as their own. So maybe they don't have to always do the expensive research spending required to come up with new technology.

http://en.wikipedia.org/wiki/List_of_acquisitions_by_Google [wikipedia.org]

Re:Are we talking about the same Microsoft? (1)

TheRaven64 (641858) | more than 2 years ago | (#37646774)

It's difficult to determine which of Google's services are actually making money. Google is in the market of harvesting huge amounts of data about people and using that to present them with targeted adverts. Anything that gives the more data about users or more places to put adverts contributes to this, but the profits will most likely show up elsewhere. This is especially true for some of their mobile services. Google Maps Mobile, for example, lets them track where a user goes, but doesn't show any ads directly. This improves the information that they use for targeting adverts, but the revenue will show up in the place where the advert is displayed.

Re:Are we talking about the same Microsoft? (0)

Anonymous Coward | more than 2 years ago | (#37646806)

Most of those risks will turn out to be unprofitable, but you don't know which ones will turn out to be profitable beforehand so you have to throw many things against the wall to see what sticks.

A company finding most of it's risks to be unprofitable is typically going bust if they don't turn this around. Obviously that won't happen for MS so long as they have Windows and MS Office cashcows.

Re:Are we talking about the same Microsoft? (1)

c (8461) | more than 2 years ago | (#37647162)

> Am I wrong, or is the phrase "unfocused, money-losing" pretty much
> the definition of the stuff that Microsoft is rolling out these days?
> SilverLight, Bing, Zune, .NET languages, ...

No, no... those are focused on money-losing. Unless someone has a better explanation?

Non-linear dynamics (1)

Gimbal (2474818) | more than 2 years ago | (#37647260)

I'm sure it's all a part of a very complex non-linear algorithm, no doubt developed by the infallible Bill Gates over a scone and a cup of Earl Grey, as he meditated about the profitability of a butterfly in China. Or, it's all they've got. Maybe both!

Cheers.

Money losing? (0)

Anonymous Coward | more than 2 years ago | (#37646252)

I know everyone loves to pile on Yahoo, and they have their problems when it comes to executing and launching innovative new products. But they simply aren't money losing: http://www.google.com/finance?q=NASDAQ:YHOO&fstype=ii

Why? (2)

unixisc (2429386) | more than 2 years ago | (#37646262)

But they already have their own search engine Bing, or is that worse than Yahoo? Why would they be interested in Yahoo @ all? The only company that could make a good case for buying them is Apple, so that they can use something other than Google for their native search services on the iPad and others. Alternately, whoever buys WebOS can also buy Yahoo, so that they'd not have to enrich Google despite people choosing a non-Google tablet or phone.

Re:Why? (3, Informative)

teg (97890) | more than 2 years ago | (#37646324)

But they already have their own search engine Bing, or is that worse than Yahoo? Why would they be interested in Yahoo @ all? The only company that could make a good case for buying them is Apple, so that they can use something other than Google for their native search services on the iPad and others.

Yahoo! has stopped doing search themselves, search has been handled by Microsoft [searchalliance.com] for a couple of years now. So there is no value there... the value would be in yahoo.com, Flickr and various other web services.

Re:Why? (5, Insightful)

Hadlock (143607) | more than 2 years ago | (#37646720)

To further your point, within a week of installing the new CEO at Yahoo, they signed on Microsoft to do both their search and advertising for them. This is snarky to say, but it's true - Microsoft already owns them. Yahoo is a revenue stream for Microsoft, without any of the risk involved for Microsoft's share price or litigious liability. Next to installing their own executive at Nokia last year, this was the ultimate un-acquisition. All of the benefits with no downsides and zero long term liability.

Yahoo is just a website (4, Interesting)

satuon (1822492) | more than 2 years ago | (#37646314)

I think of google as a search engine that happens to have a web page which you can use if you don't have a search bar in your browser. But when I go to yahoo's page, it looks more like a news site than a search portal. To me it looks like an ordinary website, not much different from cnn.com.

Re:Yahoo is just a website (3, Interesting)

msobkow (48369) | more than 2 years ago | (#37646430)

Very true. I have an email account at Yahoo (had it for years), but other than that I've never knowingly used any of their services since Google beat them at the search game. They're a good news aggregator, but if they disappeared there would still be hundreds of sites filling that niche. In fact, the only reason I end up reading their news is that I get taken to the page when I log out of my email account.

But I wouldn't say they're "unfocused" as the summary says, and it's been made clear that the summary is completely wrong about them losing money. Like most web-based companies, they're constantly on the lookout for "the next big thing." Their big problem is they've never really found "the next big thing", though they've developed and deployed a lot of "me too" services.

Despite that, they're a far more recognizable brand than "Bing", and unlike Bing, their search results seem to be on-topic (just checked a couple queries.) Apparently Yahoo still has a few tricks in their search engine that they could teach Microsoft.

Re:Yahoo is just a website (0)

Anonymous Coward | more than 2 years ago | (#37646600)

search.yahoo.com

Re:Yahoo is just a website (0)

Anonymous Coward | more than 2 years ago | (#37646724)

Yahoo has always made me sick; nothing about it is remotely attractive but you know what audience goes there; I think they are mostly the very youth and the very old, both born suckers just waiting to be exploited.

Microsoft knows Yahoo at least has loyal fans, they want that cut of the pie even if it's going bad before Google gets it. If I were Microsoft, I would get it for whatever, the sooner the better, then completely destroy it as it is and create something far more trendy

Re:Yahoo is just a website (0)

Anonymous Coward | more than 2 years ago | (#37646846)

Try search.yahoo.com, Brianiac. Is slashdot now getting worse than digg?

Money-losing!?! (4, Interesting)

Dahamma (304068) | more than 2 years ago | (#37646320)

I know Yahoo isn't particularly trendy right now, but their 2010 EPS was 0.88 and they have made a profit so far every quarter on 2011.

Calling them "money-losing" in a slashdot post isn't only completely incorrect and horrible journalism (thanks, Timothy), but lesser publications and individuals have been sued for libel for this sort of thing when it affects the stock price...

Re:Money-losing!?! (2, Insightful)

Anonymous Coward | more than 2 years ago | (#37646358)

AOL used to make loads of money too.
There's a bunch of things that's pretty obvious.
1. They don't own the coretech of what drives their business.
2. Customer loyalty and satisfaction arent what it used to be. No new features or comparitives. Exactly why use google?
3. No real presence in the app space. their apps are the worst in iOS.
4. No real presence in social. twitter, faceboock, google+
5. CEO musical chairs.
6. Large pockets of yahoo talent disappearing.

Let's say they have make black. I think their trending down. I don't think they have what it takes to pull to black when they do hit red either. They are just too far behind.

Re:Money-losing!?! (3, Insightful)

Dahamma (304068) | more than 2 years ago | (#37646404)

Actually, I agree with everything you said (other than the horrible grammar) - but it doesn't really have anything to do with my post :) Regardless of all the ways they can and should fail, they are making a profit, and stating otherwise is incorrect.

Re:Money-losing!?! (1)

vkv.raju (1285590) | more than 2 years ago | (#37646384)

Didn't knew people take decisions about investing in a stock just by reading some blog posts. But again, who knows, how suing works!

Re:Money-losing!?! (2)

Dahamma (304068) | more than 2 years ago | (#37646390)

I'm not saying, it's right, but I guarantee you posters on financial sites have been sued many times in the past - ironically several times on Yahoo Finance boards...

Re:Money-losing!?! (4, Interesting)

bloodhawk (813939) | more than 2 years ago | (#37646580)

but lesser publications and individuals have been sued for libel for this sort of thing when it affects the stock price...

umm lesser publications? what could possibly pass as a lesser publication when it comes to financial information than /.? seriously if anything EVER said on here was used for stock decisions then the moron making said decisions was going to lose his money from the next guy that tried to sell him a bridge anyway.

Re:Money-losing!?! (2)

Hadlock (143607) | more than 2 years ago | (#37646710)

Reading that, I don't think you understand the market Yahoo is in, or whoever told you about them was lying to you. Or you have significant interests in Yahoo's stock price.
 
Looking at their quarterly statistics without looking at their product and the market as a whole is pretty short sighted. I don't think they've been "trendy" for quite a while, and I think this reflects on the fact that they haven't innovated in a market that for the last 10 years has been expected to drive bleeding edge web technologies. Google keeps pressing on with innovations in social networking despite failing spectacularly at it by my count at least twice, Wave and Buzz; Google+ seems to be sticking in comparison. Microsoft is presenting at TED talks. Where is Yahoo in all this? You get email, news, and games. I can't remember the last time someone showed me printed directions from yahoo maps. Is there even a yahoo maps app for the android and iphone? This is what I'm getting at. Yahoo is firmly grounded in 2003. They're almost a decade behind Google and Microsoft, and they dismantled their R&D departments. This is not something healthy tech companies do. Apple has retail stores. Sony keeps reinventing theirs. Google announced a retail store in Europe. Microsoft has been selling computer accessories since I was a child. Yahoo is a name. They sell advertising, but have contracted out the search and advertising(!) to Microsoft. They will have a steady revenue stream for the foreseeable future, but without an R&D department (where their profits came from!) and a budget to fund it, their baby-boomer user base is going to lose interest eventually, and I don't think the younger generation (6-21) values their name brand any more than ask jeeves or alta vista at this point.
 
This isn't a retail sector where you can slash prices, hire a new spokesmodel, introduce a redesigned product lineup and buy some ad time on national TV and see sales spike through the roof for your mall retail stores. For a car analogy, Google and Microsoft are building (at a profit) mass-production hybrid hatchback vehicles that get 55mpg and have prototype fully electric plugin cars on the road. By comparison, Yahoo no longer makes cars and still only builds trucks and SUBS that only run on leaded gas, need their carburetors adjusted regularly and don't have emissions controls; the only way their cars are still sold are through government lobbying to ease emissions controls and an act of congress to give their customers tax breaks.

Re:Money-losing!?! (1)

bryan1945 (301828) | more than 2 years ago | (#37647116)

Spot on. Even my 65 year old mom tells me to "Google xyz" when she calls me to find out some obscure info (the last one being why the Seattle Mariner's mascot was a moose).

They want it for flickr. (0)

Anonymous Coward | more than 2 years ago | (#37646346)

Isn't that obvious?

Better idea (3, Interesting)

Anonymous Coward | more than 2 years ago | (#37646402)

Earth to Microsoft: Yahoo! is not worth $44 billion.
You could buy General Motors lock, stock, and barrel for $14 billion, name all the cars "Google Sucks,"
and get more bang for the buck. Heck, you'd have enough left over to buy Ford for around $16 billion,
and you could name all those cars "Google Sucks More" and still have $14 billion left over for a big party

-stolen from a post here a long while ago the first time this came around. still true-

I'd like Microsoft to stay away from Yahoo. (0)

Anonymous Coward | more than 2 years ago | (#37646420)

Yahoo is a bad weight Microsoft does not need.

pioneed? (1)

justforgetme (1814588) | more than 2 years ago | (#37646424)

what's a pioneed? a pioneer in need?

Why? (1)

Skywolfblue (1944674) | more than 2 years ago | (#37646432)

Why would MS really want to buy Yahoo at this stage?

I thought last time around it was to try and sink it so MSN wouldn't have competition. But now with facebook and google and whatnot being much bigger players, that doesn't seem like a very workable plan.

Or make some hybrid bastard child of MSN and Yahoo and turn into into the worst social networking site they possibly can and trumpet it as the "new facebook"?

I just don't see it being ~all~ that attractive to MS. Yahoo runs a slightly (well, maybe upgrade that to "a fair bit" because MSN is pretty abysmal) better version of much the same stuff as MSN, but it's not like it's a groundbreaking change.

Re:Why? (0)

Anonymous Coward | more than 2 years ago | (#37646482)

I think MS is interested in the Yahoo users. These are people who are willing to put up with Yahoo, which is a good indication that they would put up with almost anything.

Hey Guys! This is For YOU! (0)

cviuan (2477406) | more than 2 years ago | (#37646450)

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Re:Hey Guys! This is For YOU! (1)

thunderclap (972782) | more than 2 years ago | (#37646526)

Those women who are on this site would buy that type of handbag from your site. And Guys, honestly, why would we want a handbag?

AN MS and Yahoo merger might give both a fighting (0)

Anonymous Coward | more than 2 years ago | (#37646456)

AN MS and Yahoo merger might give both a fighting chance in the "Home Page" Wars.

Hey! This is for U (0)

cviuan (2477406) | more than 2 years ago | (#37646460)

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interesting (-1)

Anonymous Coward | more than 2 years ago | (#37646472)

find more interesting @ www .cooltrench .com

Hey Guys ! This is for YOU! (-1, Offtopic)

cviuan (2477406) | more than 2 years ago | (#37646474)

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Well ... (1)

lennier1 (264730) | more than 2 years ago | (#37646488)

Depends on the motivation. Would they want to continue it or simply take their patent portfolio, some assets (datacenters, key employees, ...) and nuke the rest sky high?

Hey Guys ! This is For YOU! (-1, Offtopic)

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Re:Hey Guys ! This is For YOU! (1)

thunderclap (972782) | more than 2 years ago | (#37646532)

I will never understand why people think this works. Its the internet equivalent of panhandling with a cardboard sign.

I completely understand Microsoft. (2)

stefaanh (189270) | more than 2 years ago | (#37646592)

Lately there has been a rumour that the Chinese were after Yahoo!

My guess is, "Yahoo!" is something is see Ballmer yell on stage, jumping around. "Bing!" is sounding like chinese to announce on stage.
They are just trading the names.

Just wait and Google.

Delicious (0)

Anonymous Coward | more than 2 years ago | (#37646736)

Without it, Y it's worthless :)

It's about the IP (0)

Anonymous Coward | more than 2 years ago | (#37646752)

Yahoo owns the IP behind search ads. That is why Google got so nervous about it last time. MS and Google pay them hefty fees for it. Google was worried that MS would use it as weapon against them.

Why not? (1)

HangingChad (677530) | more than 2 years ago | (#37646852)

The makers of the Zune and Windows Mobile teamed up with biggest second-rate mess on the internet. Makes perfect sense to me.

Re:Why not? (1)

bryan1945 (301828) | more than 2 years ago | (#37647120)

Yep, if you're going to screw something up, go big. Oh, the songs they will write....

Re:Why not? (1)

LordThyGod (1465887) | more than 2 years ago | (#37647154)

Agreed. Losing large sums of money online is a Microsoft forte. They do it well. They do it right. Its all part of a grand plan.

Just a defensive move? (0)

Anonymous Coward | more than 2 years ago | (#37647108)

If someone else (a Chinese company) buys Yahoo, will Microsoft lose its search partnership with Yahoo?

Search Engine??? (2)

Cruciform (42896) | more than 2 years ago | (#37647188)

You guys keep talking like MS is buying them for tech.
Yahoo is like Google and Facebook. Their product is the user. The loyal, 15 year, highly profiled, user.

Data centers and the like are mostly just a nice bonus on top.

If not MS, who will fix Yahoo? (1)

tunghoy (1923474) | more than 2 years ago | (#37647318)

Yahoo is so technically inept, it's embarrassing. Every try to log into Flickr, since Yahoo bought it? Frakking impossible.

Part of Yahoo would be good... (0)

Anonymous Coward | more than 2 years ago | (#37647918)

Just buy Yahoo, keep Yahoo Japan, and sell the rest at a fire sale.

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