Yesterday Microsoft sent a love letter to Yahoo asking the search company to be their Valentine. Over at ZD-Net UK they have posted the letter for you to read signed at the end by Steve Ballmer. It basically states:
I am writing on behalf of the Board of Directors of Microsoft to make a proposal for a business combination of Microsoft and Yahoo!. Under our proposal, Microsoft would acquire all of the outstanding shares of Yahoo! common stock for per share consideration of $31 based on Microsoft’s closing share price on January 31, 2008, payable in the form of $31 in cash or 0.9509 of a share of Microsoft common stock. Microsoft would provide each Yahoo! shareholder with the ability to choose whether to receive the consideration in cash or Microsoft common stock, subject to pro-ration so that in the aggregate one-half of the Yahoo! common shares will be exchanged for shares of Microsoft common stock and one-half of the Yahoo! common shares will be converted into the right to receive cash. Our proposal is not subject to any financing condition.
There is a lot of other stuff that you can read for yourself if you are interested. But when I read the proposal my first thought was that this may be a move that could end up to be a little late in the search game. I base this on the hamburger – chicken theory.
In the hamburger business there are a bunch of chains, McDonalds, Burger King, Wendys, etc., all basically doing the same thing. Yeah you can flame broil it, fry it or whatever but it’s still a burger in the end. But over at the chicken franchise you basically have KFC. They have ruled the roost because of their 11 secret herbs and spices.
Same with Google. They have a secret recipe for ranking searches that have made them the best at what they do. Heck. They even have a patent for it. So does anyone really think that a Microhoo will stand a chance?
Just my 2 cents. What do you think?
ZD-Net UK article is here.
[tags]microsoft, yahoo, google, internet, searches, secret sauce, [/tags]