(Credit:
Artwork by Arthur Rackham 1909, executive's heads courtesy of their respective companies, collage by Tobak)
Every kid knows the fairy tale of Hansel and Gretel, but I bet you've never heard the story of Jerry and Sue, right? Well, read on.
Not so long ago, in merry old Silicon Valley, lived a family named Yahoo. When hard times and famine hit, the father - an old advertising executive named Bostock - led two of his children - Jerry and Sue - into the forest.
Why did Bostock do that to his kids? Some say he did it so he'd have fewer mouths to feed, but nobody knows his motives for sure.
Lost in the forest, Jerry and Sue finally came upon a huge house made of gingerbread. The house was called Microsoft, and inside lived a witch named Ballmer. Some say the witch was evil, but he was more likely just desperate to reinvigorate his ancient, slumbering home with some youth. ... Read more
Maybe I'm missing something, but I don't believe I've ever seen a negotiation handled, with all due respect, as dysfunctionally and amateurishly as the way Yahoo has handled its negotiation with Microsoft.
Saturday's shenanigans seemed more like a reality television show than two industry giants sitting down to negotiate a deal.
Steve Ballmer
(Credit: Microsoft)Unfortunately, negotiating with Microsoft is not a job for amateurs. There was a time when the two companies were more-or-less evenly positioned in this dual, but that time has come and gone. The weekend's activities have left Microsoft holding all the cards. ... Read more
Fear is a human emotion. It's part of our survival mechanism--the adrenaline fight or flight response. In ancient times when a caveman felt fear, he ran and hid or readied himself for battle. Those who paid attention to their fear survived; those who didn't, well, let's just say their descendants probably aren't around to read this.
Having courage does not mean ignoring fear. It means facing fear head-on and doing the right thing anyway. At least that's my definition. If you fail to face fear and act appropriately you're not necessarily a coward, but you're not the best you can be either.
The most successful people on the planet are the ones who face the cold, hard truth of reality and act accordingly. They don't surround themselves with "yes men" and they don't view the world through rose-colored glasses. ... Read more
There are lots of things I don't understand. They make me crazy. But don't worry, it isn't contagious.
What I don't understand
How was Lou Gerstner able to reposition a zillion-year-old company like IBM from big iron to services, while Jerry Yang doesn't even know where to begin reinventing Yahoo!?
Why does my wife clean the house before the cleaning people come?
When you tell telemarketers you're not interested, why do they keep talking until you hang up on them?
Why do criminals go to all the trouble of robbing a bank or smuggling drugs and then get caught with the goods doing something stupid like speeding?
Last week my dog pissed on the couch; the same day the cat threw up in my slippers. Why do bad things happen in groups? Is there some unknown force of attraction between disastrous events? Where are the physicists on this? ... Read more
Yes, I know Yahoo rejected Microsoft's bid of $31 per share. But that's just standard negotiating strategy in the world of mergers and acquisitions.
Sure, Microsoft's offer - a 60% premium over the price of Yahoo's stock at the time - was designed, not only to get Yahoo's board's attention, but to back them into a corner. If no other suitors emerge - as I predicted in a prior post - it's an offer Yahoo's board can't refuse without risking shareholder litigation or revolt.
But that doesn't mean Microsoft didn't leave itself any wiggle room, and Yahoo's board knows that. They also know that this is Microsoft's big chance, perhaps its only chance, to jump to number 2 in internet search and advertising and challenge Google. That means Yahoo has some negotiating power. ... Read more
Microsoft's unexpected marriage proposal to Yahoo has been the talk of the high-tech town. Who would have thought a possible geek betrothal could rival the coverage of Angelina and Brad?
And even though Microsoft has yet to get an answer from its intended partner, I've got a pretty good idea how this deal's going to go down. Here's my take on the outcome with respect to all involved parties:
Microsoft
It sucks being No. 3 in every Internet business metric--search, advertising, and properties. Microsoft is desperate to gain market share on Google. Also, it would probably be a good idea to turn a profit in its Internet business one of these days. That's the only reason Steve Ballmer's willing to take on the Yahoo mess.
Don't forget, the cost to the software behemoth means nothing. Win, lose or draw, Microsoft has nothing to lose and everything to gain. ... Read more
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