Yeah, the Yahoo – Microsoft deal fell through. On the outside, it looks a bit dim for Yahoo. However, I don’t think that’s the case at all.

I sincerely believe that the failed Microsoft – Yahoo deal will end up making Yahoo stronger and more innovative. Call it a wakeup call if you will.

Being that Microsoft walked away from the deal may have an unintended consequence of actually encouraging Yahoo to become even more competitive in the niche that both share. Failed acquisitions have often bolstered a struggling company into becoming stronger. After all, they know their fate should their efforts fail. I see Yahoo bouncing back in the next 6 to 12 months with newfound enthusiasm.

You can write that down, seriously, write that down.

I also don’t think Microsoft was all that enchanted with the Yahoo purchase by any means to begin with. I think it was a play to bolster Microsoft’s marketshare and a chance to screw with Yahoo’s collective heads. I feel very strongly that Microsoft would have found a way not to go forward even is Yahoo had met Microsoft’s $33.00 per share price. We all know how Microsoft likes to mess with Yahoo, after all this isn’t the first time Microsoft has courted Yahoo.

I see a reinvigorated Yahoo on the horizon and you can bet Microsoft will pull the Yahoo buyout stunt again in a couple of years to bolster their share price and marketshare. One can almost bet on that certainty.

 What Microsoft needs to spend money on is to fix Vista and Internet Explorer 7. That would be money well spent...

Good luck to Yahoo! You have some good things happening (like MyBlogLog and BuzzUp among other things). The social media angle is going to work for you, if you approach it right.

Related items

Yang betting on Y!Open to save Yahoo! (Dan Farber)

Microsoft/Yahoo: Summary Of Today’s News & Bonus Gillmor Gang (TechCrunch)

New York Times Article

Ok, so now what?  (Jerry Yang)

Do you agree or disagree? Leave a comment.

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