April 10, 2008 1:14 PM PDT

Microhoo: Where's the outrage?

A company with a reputation for cutthroat behavior and squashing the little guy tries to buy a pioneer of the Internet, once one of the most beloved companies in Silicon Valley.

And the customers of that pioneer yawn.

Those of us covering the Microsoft-Yahoo saga have been amazed at the apparent lack of hand-wringing among Yahoo customers. It's baffling. Even the comments on stories we've written about the Microsoft takeover attempt have been mostly along the lines of, "Let's get this deal done already."

Sure, there have been a few horrified readers. But the majority have either been nonplussed or even pro-Microsoft.

Yahoo graphic

It's easy to understand why advertisers aren't squawking about Microsoft acquiring Yahoo: they're a lot more concerned about Yahoo hooking up with Google--or Google just getting more powerful, which could drive up ad rates.

But the Internet public? Where's the Yahoo love?

To figure out what's going on, I applied the scientific method: I went to Facebook. So far, I've only come up with two "save Yahoo" groups: one with 20 members and the other with 41. There's also a "Save Yahoo too (sic) Hell with Google" group with seven members.

In fairness, the generic Yahoo group on Facebook has 1,597 fans. (If you have a "save Yahoo" group I haven't discovered, please send it to me, and I'll add it to our list.)

By comparison, the "I read Business 2.0, and I want to keep reading!" group had 2,082 members before Time Warner shut down the magazine.

I have to think that Yahoo has just a few more customers than Business 2.0 had readers. So what gives? I suspect a few things: As Yahoo has attempted to become more of a media company, it's become less of a fascination for the tech set.

I also have to wonder how much mostly free services like e-mail and instant messaging win customer loyalty. I use Yahoo for both, and I'll be annoyed if another company messes with it. But am I panicked about it the way I would be if someone messed with my iTunes? Heck no. I'll deal.

Ultimately, Google, which looks every bit as tough as the Redmond gang these days, is the biggest factor. Microsoft can't seem to find a way to compete with Google in new markets (or with Apple in old ones). Buying Yahoo? That's an acknowledgment that Microsoft needs help, not an aggressive act by a corporate predator trying to snuff out the competition.

Google has also become the Internet darling of the general public. Ask your parents to name an Internet company, and they'd probably say "Google," not "Yahoo." I'd like to think that my parents would say "CNET Networks," but they'd probably say "Google" too.

Microhoo chart

Confused by all the companies trying buy or partner with Yahoo? You're not alone. Just follow the numbers in this diagram, and it will start to make a little more sense. Sort of.

(Credit: Susan Dove/CNET News.com)

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Add a Comment (Log in or register) 16 comments
Yahoo boo-hoo
by mudge1705 April 10, 2008 2:01 PM PDT
I'm not sentimental about Yahoo! Years ago a glitch of some kind zapped my years-in-the-making My Yahoo page to smithereens. Could not get any support at all, so I took my home page first to Google, then, seeking a more lively interface to Netvibes and Pageflakes (tabbed browsing!). Ballmer should pay no more than Yahoo is worth -- 2 cents seems fair.
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Faithful Yahoo User
by craftergin April 10, 2008 2:06 PM PDT
I am outraged! I've been with Yahoo! since 1995. I also use Microsoft products. I just can't stand the idea of MS owning everything. Leave Yahoo! along, big brother!
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Outrage? Not for me.
by Mister Mike April 10, 2008 2:39 PM PDT
While I'm not too outraged by the fact that Microsoft is trying to buy Yahoo!, I'm rather thrilled that Microsoft has actually gotten to the point that they have to buy Yahoo! in order to compete. This fact seems to imply that Microsoft is finally losing ground and will soon no longer be the monopoly machine that it currently stands to be.

In another 5-10 years, Microsoft will hopefully have gone the route of Corel and many other software companies; still remembered of course (how could anyone ever forget Microsoft), but relegated to obscurity due to their shoddy programming and lack of any true innovation.

As to whether or not the buyout goes through, I hope it doesn't. Microsoft needs to die, they're heavy-handed tactics and anti-competitive behavior must one day end. I doubt that they're ever going to change their ways, not really, so eventually it's going to be their own downfall.
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Why would customers rage?
by WearyOfEmotionalPosters April 10, 2008 2:53 PM PDT
Sure the Valley has worked itself into a sense of fear and loathing of and for Microsoft.

Competitors are going to be concerned of course. Especially open source guys that are a special and vocal Microsoft competitor that hasn?t really figured out how to compete effectively. They?ll all rage, whine or ***** about it.

On the other hand Microsoft?s customers and partners universally win along with Microsoft. Most of Yahoo?s customers are Microsoft customers too. For them it?s fine. At best they?ll get better integrated services. At worst it won?t matter.
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Competition
by AeroJonesy April 10, 2008 3:02 PM PDT
I think people see a Yahoo-Microsoft merger as finally creating some competition for Google. I can't see too many people being upset when someone finally rises to challenge #1.

Additionally, I think Google's massive online presence combined with the rise of web 2.0 have shifted the spotlight away from Microsoft. I don't get the same "Microsoft is evil" vibe that I used to get a couple of years ago. There's enough competition out there that Microsoft is becoming more of a choice than a default. Firefox, Open Office, and Linux compete with Windows Explorer, Microsoft Office, and Windows. It does seem odd that increased competition may actually be increasing Microsoft's reputation, but I think that is what has happened. And I think that's why there has been very little pushback from Yahoo users. I'd also wager that the types of folks who would be resistant to Microsoft's attempted takeover have long left Yahoo.
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Yacrosoft
by gsacks April 10, 2008 3:33 PM PDT
Just had to put this out there. Yacrosoft was my favorite fake name floated out there for a Microsoft/Yahoo merger. Microhoo is just too lacking in the "Yak" department.
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Here's Why No One Cares
by sismoc April 10, 2008 3:40 PM PDT
1) Yahoo! has become irrelevant - They are a non-factor in internet innovation and just a provider of commodity services.

2) Internet businesses have become just that, businesses - The passion for technology firms is fading away. The thrill is gone. The love has evaporated. The only emotions left are dislike and/or hatred.

3) This deal will kill Microsoft - Years from now as the history of computing is written the failure of Windows Vista and the purchase of Yahoo! will be seen as the one-two punch that took out Microsoft. That prospect has a lot of people smiling.

There are probably other lesser reasons, but those three are the biggest.
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here's some outrage
by steve merball April 10, 2008 3:42 PM PDT
http://img266.imageshack.us/img266/9681/microsoftsinkingwi2.jpg
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People don't care.
by t8 April 10, 2008 3:50 PM PDT
People don't care because the Internet is Google to many. Yahoo is a brand like CNet or AOL and it doesn't make a blip on most people's radar.

When people think of the Internet it is Google that comes to mind, just as Microsoft comes to mind when you think computer.

That said, Microsoft trying to be synonymous with the Internet is only going to cause brand confusion. There is only so much you can stretch out a name before it loses its identity.

Levis selling shoes and Cadillac selling cheap cars comes to mind. In the end both those companies had to concentrate on their core products and the latter company never recovered.

What's next for Microsoft, maybe Microsoft Coke. Not the real thing, but hell they might make some extra money.
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Because we are viewers not cusomters.
by bwvla April 10, 2008 3:55 PM PDT
Web surfing has become more and more akin to watching tv.

I'm hardly a customer of ABC, just a viewer when LOST is on. Certainly if ABC gets eaten by NBC then I'll still watch any shows I like that remain. I might smart a bit if a specialty channel like Comedy central goes away, but otherwise most major networks are replaceable.

As much as I dislike Microsoft's way of doing business I'll likely still watch my favorite YAHOO! pages much like most democrats will tune into FOX for the Simpson's despite the station being run by a neo-con republican. If my favorite pages disappear I'll look to Google or other web "stations" for new pages.

Few of us are website customers, we are mostly just neilson ratings.
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Everyone is Speechless w/Despair and Rage at the Boy Fuhrer fr/Duncan Hines
by Sumatra-Bosch April 10, 2008 3:55 PM PDT
That's why you don't hear people raging on and on about it.
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The outrage?
by mikalg April 10, 2008 5:01 PM PDT
Time and again, I see this story in one form or another.

The only outrage I see is that several of the writers, including you Jim, and semm to hate Microsoft SO much it means a great deal to you.

For the rest of us, who don't absolutely hate everything Redmond, really don't see the problem.

Add to that, the fact that the only real reason given in almost every single story, and post against the "merger/take over" is that it is conducted my Microsoft.

Re-read your story Jim. Everyone else take note. The story itself does not give a valid, reasonable, earth shaking reason AGAINST such a move by MS/Yahoo.

All I see is that you hate Microsoft, or at least dislike it a GREAT deal. Fine, whatever.

As far as I can tell these are your reasons for being against the action itself:
"A company with a reputation for cutthroat behavior and squashing the little guy"

"I'll be annoyed if another company messes with it" (email?)

"Microsoft can't seem to find a way to compete with Google in new markets (or with Apple in old ones" Here I am guessing you own a MAC.

"That's an acknowledgment that Microsoft needs help, not an aggressive act by a corporate predator trying to snuff out the competition"

Didn't you just state that MS is a corporate predator in the first sentence Jim?

So, which is it. Microsoft is EVIL, or just needs help competing with Google (and since you mentioned it) Apple?

I don't see an argument here. No wonder no-one even seems to care. Those "writers" that seem SO offended by Microsoft in this instance, can't really come up with a good reason for Yahoo to say "No!".

Don't blame me, I just read your story, and it has NO BEARING on actual meaningful reasoning.
Go figure......
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I hate Yahoo
by Jim Harmon April 12, 2008 4:40 AM PDT
I've had dealings with both Yahoo and Microsoft. Each time I've been impressed with MS's willingness and ability to resolve any difficulty I've had. Yahoo, on the other hand, has treated me as if either: (1) I didn't exist, (2) The problem wasn't important, (3) There's nothing that can be done, or (4) It's all my fault.

One commenter said that Yahoo's stock was worth 2 cents. IMHO, even that is overpriced. Yahoo ought to pay MS to take them over! The result of the merge couldn't possibly make Yahoo any worse.
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