Google-Yahoo Deal Reeks of Collusion
Google did well to get the DoubleClick deal past the Federal Trade Commission, but cozying up to search and online ad rival Yahoo was clearly a move to fling mud in Microsoft's eye as it seeks to buy Yahoo. Yahoo could use the alleged $1 billion or so in cash the deal could generate. But Google didn't need to do the deal to enhance its position, not to the extent that it needed DoubleClick to boost ad serving and gain more relevant data on its customers. So now the DOJ is looking at Google as a greedy gobbler. Microsoft said a Google-Yahoo tie-up would give Google 90 percent of the search market. That might be overstating it a bit. Yet TechCrunch is right in painting a portrait of the Google-Yahoo deal as reeking of collusion. Here's the key: The fact that the DOJ is looking into this means there is serious reason to believe the companies are going to be accused of scheming to mess with the market. Microsoft's fixation on Yahoo does not give Google the right to insert itself into the situation and play the Save Yahoo! card. What I've noticed is that where the FTC might be hoodwinked or pushed around (some would argue that Google duped the FTC with misdirection to get DoubleClick), the DOJ bites into suspicious activity and bites hard. Microsoft, the master of pushing the envelope of just business practices, learned that painful lesson years ago. This is why its general counsel, Brad Smith, rushed to cry foul over the hookup; he and his legal eagles know better than most how the DOJ views these things, and it isn't with kindness. Does anybody not see the Google-Yahoo deal as suspect? Please explain to me how. Meanwhile, let's talk about how we got here. Will Microsoft and Yahoo strike a deal before Saturday? I say no, and that Microsoft will go hostile. You can guarantee it's already got that letter to shareholders drafted. |
Comments (2)
I think it's great! I welcome any enterprise, "collusioned" or otherwise, that will stop Microsoft in its tracks. At least it will get Microsoft's attention that there are indeed "TWO" 800 pound Gorillas on the block...and they better learn how to play nice.
Posted by M Lewis | April 28, 2008 9:52 AM
Gee, Google might end up with 90% of the search market. I guess only Microsoft is allowed to have 90 % of any market. Pick one. PC operating systems, PC-based Word Processing applications, PC-based spreadsheet applications, PC-base web browsers, and on and on. In every case they crushed the competition that existed, by giving their stuff away for free, or selling for such low prices no one could compete, especially when they made OEMs pre-load them on all PC systems. If GM owned 90 % of the pickup market, 90% of the 2 door car market, 90 % of the 4 door car market, and 90 % of the station wagon market, how much attention would we pay to a complaint from GM that Chrysler owned 90 % of the minivan market ? Stick a fork in Microsoft, they're done.
Posted by Brian | April 28, 2008 10:27 AM