Microsoft
Good vs. Evil? Yahoo, Google and AOL vs. Microsoft and News Corp.
Of course it's not that. This is business, not a morality play.

This is business, people, not a morality play, so please, refrain from any value judgments when you read this news: Yahoo is teaming up with Google and AOL in an effort to escape from Microsoft’s clutches. But Microsoft is looking to Rupert Murdoch (!) for help in gobbling up Yahoo. Egads!
I know what you’re thinking, you bleeding hearts — that this is a classic good vs. evil fight. You’re picturing AOL as the helpful friend to your still-on-dial-up grandmother, Yahoo as that do-good Internet pioneer who’s hit on hard times, Google as the haloed innovator whose official mission is to refrain from sin.
And meanwhile, on the other side, we’ve got monopolistic Microsoft hooking up genocidal tyrant Rupert Murdoch, kind of like if Lex Luthor and Sauron got together for a doubles team. So hard to choose which side to root for, eh?
Well, just stop. Because it’s Yahoo, actually, who’s playing hardball here, Yahoo the one with tricks up its sleeves.
On Wednesday, for instance, the company announced a clever deal to allow its rival Google to run ads on Yahoo’s search results pages. The effort is meant as a test — Google’s ads will only show up on some of Yahoo’s search results, and only for a two-week period — but the move could prove Yahoo’s value to investors, because Google’s ads fetch high profits.
If the test shows that Yahoo could earn wheelbarrows of money if it switched to another ad provider, Microsoft’s bid to take its merger case to Yahoo’s shareholders could backfire — the shareholders might rightly demand a higher price than MS is now offering.
Then there’s Yahoo’s AOL bid. As the Wall Street Journal reports, executives are considering a deal in which AOL would invest in Yahoo, and Yahoo would use the cash to buy back some of its own stock, thereby blocking a Microsoft deal.
So how’s Microsoft responding to this? Not by raising its investment above $31 per Yahoo share, at least not yet. No, instead MS wants Rupert Murdoch to invest some of his money, thereby creating a company that combines Yahoo, Microsoft’s MSN, and News Corp.’s MySpace — a bonanza for advertisers.
But as the Journal says, such a deal seems like an uphill battle: “A three-way combination would also increase the complexity of any post-deal integration in areas such as combining computer systems, streamlining management and sorting out brand strategy. It might also be hard to drum up Yahoo shareholder support for such a more complicated scenario.”
Oh, and one more thing, for you good and evil bean-counters: It’s Bill Gates, Microsoft’s co-founder and chairman, who’s out there saving the world, and it was Yahoo that helped China jail a dissident. And there’s still no proof Rupert Murdoch’s a genocidal tyrant. (I think.)
Farhad Manjoo is a Salon staff writer and the author of True Enough: Learning to Live in a Post-Fact Society. More Farhad Manjoo.
Latest WikiLeaks: Microsoft aided dictator
Bill Gates' deal with the government of Tunisia, and other instances of officials and corporations behaving badly
Bill Gates and former Tunisian President Zine el Abidine Ben Ali. (UPDATED BELOW)
Politicians and corporations behaving badly: that’s one theme that emerges from the latest secret State Department cables released by WikiLeaks.
The new revelations don’t measure up to the seriousness of the alleged massacre of civilians by U.S. troops in Iraq that I delved into over the weekend. But they are still very much worth noting.
A cable from 2008 titled “Mayawati: Portrait of a Lady” reports that the chief minister of India’s Uttar Pradesh state (the country’s most populous) once dispatched an empty private jet to Mumbai to procure her favorite brand of sandals:
Continue Reading CloseJustin Elliott is a reporter for ProPublica. You can follow him on Twitter @ElliottJustin More Justin Elliott.
Microsoft to buy Skype for $8.5 billion
Purchase will mark largest acquisition in the software maker's 36-year history
Microsoft Corp. said Tuesday that it has agreed to buy the popular Internet telephone service Skype SA for $8.5 billion in the biggest deal in the software maker’s 36-year history.
Buying Skype would give Microsoft a potentially valuable communications tool as it tries to become a bigger force on the Internet and in the increasingly important smartphone market.
Microsoft said it will marry Skype’s functions to its Xbox game console, Outlook email program and Windows smartphones. The company said it will continue to support Skype on other software platforms.
Continue Reading CloseSteve Jobs beats Microsoft with an iPad club
The last time life was this good for Apple, the PowerBook was new and Windows 3.1 had yet to launch
The Mac Classic II The news that for the first time in 20 years, Apple’s quarterly net profit — $5.99 billion — has exceeded Microsoft’s — $5.23 billion — is remarkable for a couple of reasons. First, there’s the fact that the massive success of the iPad has pounded the market for consumer laptops and notebooks running Windows.
Continue Reading CloseConsumer PC shipments dropped 8 percent in the quarter, Microsoft Chief Financial Officer Peter Klein said. Netbooks — the cheap laptops that became popular during the recession — plunged 40 percent, partially because of defections to tablet computers, he said.
Andrew Leonard is a staff writer at Salon. On Twitter, @koxinga21. More Andrew Leonard.
Nokia, Microsoft in pact to take on Apple, Google
World's largest mobile maker will use Window's software as the main platform for its smartphones
Smartphones like the Nokia 5800 will now be programed with Microsoft Window's Phone software in a partnership aimed at taking consumers away from iPhones and Androids. Technology titans Nokia and Microsoft are combining forces to make smart phones that might challenge rivals like Apple and Google and revive their own fortunes in a market they have struggled to keep up with.
Nokia Corp., the world’s largest maker of mobile phones, said Friday it plans to use Microsoft Corp.’s Windows Phone software as the main platform for its smart phones in an effort to pull market share away from Apple’s iPhone and Android, Google’s software for phones and tablets.
Continue Reading CloseRay Ozzie leaves Microsoft
He was considered a possible heir apparent; his departure is bad news for the software giant
Ray Ozzie Ray Ozzie gave me hope for Microsoft. When he joined the software behemoth after it bought his collaboration-software company, Groove Networks, he brought qualities to the executive suite that Microsoft sorely needed. The most notable was an appreciation that the software world was moving toward models of cooperation with others as much as plotting their ruination. He was considered a potential, even likely, successor to Steve Ballmer, the only other CEO Microsoft has had besides Bill Gates.
So much for that idea. Ozzie’s departure, announced today in a weirdly low-key manner, shows that Microsoft is still struggling to define itself for the Internet era.
Continue Reading CloseA longtime participant in the tech and media worlds, Dan Gillmor is director of the Knight Center for Digital Media Entrepreneurship at Arizona State University's Walter Cronkite School of Journalism & Mass Communication. Follow Dan on Twitter: @dangillmor. More about Dan here. More Dan Gillmor.
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