Microsoft
Bill Gates Wants Yahoo’s People. The Feeling isn’t Mutual.
This is the funniest thing I’ve heard all week.
Bill Gates is willing to pay a lot for engineering talent.
Asked what makes Yahoo worth more than $40 billion, Gates pointed not to the company’s products, its huge base of advertisers, or its market share, but rather to Yahoo’s engineers. Those people, he said, are what Microsoft needs to go after Google.
In an interview after his speech at Stanford University, Gates said that it turns out it takes a lot of manpower to build tools for advertisers, mobile, and video products as well as improving its core search algorithm and building an infrastructure for cloud computing. “The amount of computer science it is taking to do that is phenomenal,” he said. “As you get more scale of engineering you can just pursue that agenda more rapidly. Yes, the advertisers and the number of end users is good, but we’d put the people and the engineering as the key thing.”
Bill, what the Hell are you talking about? Yahoo employees hate your guts! No matter how great their engineers are, they just won’t work for you!
“Yahoo has always considered itself a bit of an upstart,” says a former Yahoo employee who asked to remain anonymous. “Most Yahoo employees will feel that, A., we lost, and B., there is no way in hell that I am going to work for Microsoft.”
Even if Microsoft buys Yahoo, Yahoo’s best engineers could follow the well-respected Brad Horowitz to Google. In a cruel twist of fate, Google could end up getting the very engineers Bill wanted out of the purchase. Ballmer could end up needing a lot more chairs.
After watching this clip from Pirates of Silicon Valley, it occurs to me that Bill is probably lying about his motivations. He really wants Yahoo for its advertisers and users. All his talk about valuing Yahoo’s engineers is just a ploy to lower resistance to a merger.
Either way, it won’t work. Genuine or fake, Bill’s lust for Yahoo’s people is not mutual.
Google and Ballmer on Microsoft-Yahoo
Microsoft’s proposed purchase of Yahoo is a bad idea for Microsoft. Now Google says it’s a bad idea for the Internet.
The openness of the Internet is what made Google — and Yahoo! — possible. A good idea that users find useful spreads quickly. Businesses can be created around the idea. Users benefit from constant innovation. It’s what makes the Internet such an exciting place.
So Microsoft’s hostile bid for Yahoo! raises troubling questions. This is about more than simply a financial transaction, one company taking over another. It’s about preserving the underlying principles of the Internet: openness and innovation.
Could Microsoft now attempt to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC? While the Internet rewards competitive innovation, Microsoft has frequently sought to establish proprietary monopolies — and then leverage its dominance into new, adjacent markets.
On the flipside, this purchase could very well destroy both Microsoft and Yahoo. Microsoft would empty its war chest on something that can’t compete with Google, and Yahoo would be slowed down by the dinosaurs at Microsoft. I’m sure Google wouldn’t mind that bit. The sad part is, somewhere deep down beneath all that fat and bravado, Ballmer knows this.
Ballmer said he loved when his rivals merged, because whenever the also-rans in any market start teaming up they might as well be waving a white flag. Because it’s over. You’ve beaten them. You’ve driven them to despair. They haven’t been able to beat you on their own; there’s no way they’ll do it together.
Microsoft-Yahoo won’t kill Google. It’ll just annoy everyone else.
