What’s Steve Ballmer really up to? 

I kept thinking to myself, Steve can’t seriously be considering this. He can’t possibly be ignoring all of the issues of a combined company:

  1. Culture shock — A lot of Yahoo!’s, self included, are Linux people. We will be embarrassed to have Microsoft on our resume, and some will likely leave
  2. Integration challenges — I won’t list them all out
  3. Anti trust — Given Microsoft’s history, Steve should know that the government will certainly take issue with Yahoo Mail and Hotmail, MSN Messner and Yahoo Instant Messenger, and others.

I’m calling your bluff Steve. We both know you don’t really want to buy Yahoo!. Why the offer then? Let’s speculate. Sometimes in business, you ask for much more than you really want. Then, when that doesn’t happen, you still win by conceding on something smaller. So he comes in with a threat to buy/takeover, and will settle for something less. What is the "something less" that he could  be after? I haven’t figured that part out yet, but here are some ideas:

  1. A partnership to team up against Google. Not a takeover, but a tangible deal that aligns the two companies together as a team.
  2. A meaty advertising deal
  3. Better product interoperability. Have services such as Hotmail and Yahoo mail work better together

Let’s see what happens, but I don’t think that it’s about a takeover — even Microsoft knows that’s a bad idea.