So Yahoo officially announced that its talks with Microsoft have concluded they have once again failed to reach any kind of deal. There are reports that Yahoo may soon announce a search deal with Google. They’ll basically be outsourcing search to Google. Throwing away a core competency key to its long-term success for short-term gain. In my eyes I feel like Yahoo really botched this whole thing.
So TechCrunch recently reported that Digg is looking to be acquired. Note that this is not official and is an unconfirmed report. Among the parties bidding on Digg are Microsoft and Google. I think it’s about time and if Digg doesn’t sell soon, it’s going to have to lower its expectations more and more. Honestly, apart from their “algorithm” which can easily be reproduced or emulated, there’s nothing special about Digg other than its large user base. That in itself is not a unique advantage. Yahoo just released a similar site called Buzz and I think Yahoo can find ways to leverage its massive user base and channel traffic through Buzz.
Well I fire up my RSS reader and of course the big news everybody is talking about this morning is Microsoft’s proposed acquisition of Yahoo. I always thought this would be a good thing considering there’s just no way Microsoft by itself can compete with Google in search. Microsoft’s share is just too small and while Yahoo is ailing, it has lots of valuable assets and web properties (aside from the obvious main Yahoo portal), hence the enormity of the offer. If it happens, it would be one of the largest, if not the largest tech takeover. Microsoft can probably fund a huge chunk of this acquisition using cash they have on hand.