Friday, April 11, 2008

Jerry Yang is possessed!

I think I should convert to Tantric Buddhism. True, I can support Tibet even more vigorously. But the more pressing reason is, reincarnation seems to be a real thing. Its been a year since Seung-Hui Cho went on a killing spree at Virginia Tech. His evil spirit which possessed Jerry Yang, the founder and current CEO of Yahoo is about to unleash another bloodbath now.

When M$ made the offer, which everyone knows is the inevitable marriage of a young girl with a toothless, chair throwing, bald, old man with money (aka Ballmer), it was expected that many Yahoo developers would jump ship. But little did they expect the suicidal maniac in Jerry Yang to try sinking Yahoo and its employees with it.

I mean, Jerry wants to outsource Search Ads to Google! Come on, will any self-respecting Software Engineer work for a company that outsources its core business? Even if the test idea was to push M$ to raise the offer, how exactly does it work? You admit that your business is dead and ask more price for the carcass, is it?

And then there are other suitors. Imagine that you get a tip-off that a flight to the city of your in-laws is gonna blow up mid air. Will you not be tempted to put your wife on it? I mean, she is happy to get a trip to her parents and you're quite happy to get rid of her. Nice deal, rite? 

Thats exactly what M$, Time Warner and News Corp wanna do. They were looking to dispose off MSN, AOL and MySpace resp and have found a Bodhisattava in Jerry Yang, to relieve them of their suffering. Ofcourse the Chinese (aka Google) will be happy to see all these splittists dead.

The only sane outcome from this mass renunciation would be Yahoo acquiring MSN and MySpace plus some cash in exchange for majority shares to M$ and Murdoch in the combined entity. The company should still be called Yahoo, remain in Sunnyvale and should eventually embrace M$ platforms. 

M$ should divest itself of all internet crap its been building and return to its core businesses (i.e. become another old aunty like IBM, Sun etc). AOL can be bought by Google for some small change or just close shop, since nobody will notice anyway.

8 comments:

Arun said...


I mean, Jerry wants to outsource Search Ads to Google! Come on, will any self-respecting Software Engineer work for a company that outsources its core business?

ur ad inventory is low, ur search market share is poor. technology cant be compared with google dierctly bcos of substantial difference(1/2-3rd?) in ad listings and less queries(=most algos depends on learning from data)

anyway, investors have been asking this for past 3 years. if u can increase revenue by 60% and cut off few hundred million costs in machine and ppl. it makes sense to do it from jerry's pov. ofcourse this is a short term thing as in long term u will become goog's mercy. but right now yahoo's worth is very much a short term thing as scoop by MS is inevitable. only question of price.
this revenue boost is just to support thier argument that they are worth more.


Even if the test idea was to push M$ to raise the offer, how exactly does it work?

well did u see the stock price today? or did u know that an investor increased its stake from 5% to 10% of all yhoo's assets.


You admit that your business is dead and ask more price for the carcass, is it?

every negotiation is based on future value. they have users. they just want to show theoretically they can get much more if they partner up with google.


Thats exactly what M$, Time Warner and News Corp wanna do. They were looking to dispose off MSN, AOL and MySpace resp and have found a Bodhisattava in Jerry Yang, to relieve them of their suffering. Ofcourse the Chinese (aka Google) will be happy to see all these splittists dead.

this is good for yahoo. yahoo's future is nothing but bleak. its better to dispose it earlier .
did u know that yahoo rejected a buyout price of 90B from MS, 2 years earlier. now MS suddenly dont want to pay a dime more than thier original offer.

M$ should divest itself of all internet crap its been building and return to its core businesses (i.e. become another old aunty like IBM, Sun etc). AOL can be bought by Google for some small change or just close shop, since nobody will notice anyway.

completely agree
having said that just like aol and yahoo, one trick pony google will face same future. party is over for them. its future is nothing but going down. i'll there to blog on blogspot abt its epic failure. ofcourse im not saying that bcos of any bias, but its just the way internet works. distributed startups rule the internet. every big company can be good at one thing and try and fail at others.

Arun said...

i shud someday write abt why companies can never be innovative

Arun said...

i meant "big companies"

Balaji said...

i don't believe the google adsense testing has added any value to yahoo stock. infact i would fire the guys who suggested this! are the investors (atleast the significant ones) so dumb that they can't be convinced with projections but need actual data from a public test?

i think yahoo shares will improve bcos its not a one horse race. wall street sees that M$, AOL and News Corp (and google in the shadows) are interested in the transaction and is not just the case of M$ calling the shots. that might explain the stock price improvement. in any case the stock value of the company to be accured always improves. afterall the inverstor knows that the strategic buyer is willing to pay some 30 or even 35 bucks in this case.

but the adsense strategy is on very dangerous grounds on the anti-trust aspect. imagine the kind of leverage this gives to M$. even senators are looking at this testing now. i think this testing may even force M$ not to raise its offer. bcos what justification do they have now to invest in a company which public admits that it cannot compete with google. M$ has shareholders too!

yahoo has laid its card too soon and has probably lost its chance for a fair deal with M$. i wonder why they could not just announce the talks with AOL and wait for M$/murdoch combo to raise the offer.

Arun said...


i don't believe the google adsense testing has added any value to yahoo stock.

it has, just see the stock price yesterday. many analysts believe that it has added yahoo negotiating leverage.


infact i would fire the guys who suggested this!

i wish you could.


are the investors (atleast the significant ones) so dumb that they can't be convinced with projections but need actual data from a public test?

real data is always good. projections are pretty much arguable(esp during negotiations). yahoo is arguing its growing y-o-y (for eg see thier 3 yr presentation). MS is arguing its losing ground by pointnig at detoriating market share.
at the least yahoo by going to google, will scare the shit out of MS, which means MS will have no chance in the search advertising game.

but the adsense strategy is on very dangerous grounds on the anti-trust aspect.

defnitely

imagine the kind of leverage this gives to M$. even senators are looking at this testing now. i think this testing may even force M$ not to raise its offer.

im not clear why, in all case its same situation as if yahoo has not done the test. arent u saying if anti-trust issue wasnot there, MS may reaise the bid?

bcos what justification do they have now to invest in a company which public admits that it cannot compete with google. M$ has shareholders too!

these are not justifications. by acquiring yahoo(which has same products as itself), MS "justifies" its products cannot do much by itself. so? its not abt pride, its abt wat can bring higher revenue to the company(short term and longterm). if its abt pride there wud be no acquisitions(egomaniacs like apple).


yahoo has laid its card too soon and has probably lost its chance for a fair deal with M$. i wonder why they could not just announce the talks with AOL and wait for M$/murdoch combo to raise the offer.

i dont know. in the worst case yahoo may get the current offer. its just trying to play games to raise the offer.

for comprehensive coverage on every say from each of them,
http://www.alleyinsider.com/microsoft-yahoo/

Arun said...

with all guesses, its my belief that the comment from FTC/antitrust abt the yahoo's test is works of microsoft's money.

if google gets 90% share ,advertisers have no big incentive to advertise in MS. less advertisers and less users, ur technology is screwed however smart it is.

Arun said...

read the first/last para's. i quite agree with them
http://www.alleyinsider.com/2008/4/desperate_yahoo_clings_to_google_will_test_search_ads

Balaji said...

oh no. I don't think the articles there are smart. one guy says "there is still hope of M$ walking away from the deal". as if thats a good thing for yahoo. YHOO will hit single digits if M$ pulls out.

besides I don't get why the media is talking seriously about the google test. there is no way in hell, the government will allow yahoo to outsource search ads to google. and AOL already serves Google Ads. YAHOO-AOL serving Google Ads is just a fantasy. in anycase M$ has faced so much anti-trust mud, it'll know how to raise hell.