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Microsoft's Letter To Yahoo

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Posted February 2, 2008 - By Stephen Johnson

The New York Times uncovered the letter sent from Microsoft's Steve Ballmer to Yahoo board of directors. While we're really disappointed that it didn't read:

"Do you like me?  Yes. No. (Check one.)

the actual text of the letter breaks down the advantages of a merger to both companies and is fascinating reading, if the details of internet company acquisitions are your bag, you'll love this document. This dry, business-speak document could well be the beginning of a fundamental transformation of the way we use the internet. 

Ballmer's top four reasons the two companies should merge:

  • Scale economics: This combination enables synergies related to scale economics of the advertising platform where today there is only one competitor at scale. This includes synergies across both search and non-search related advertising that will strengthen the value proposition to both advertisers and publishers. Additionally, the combination allows us to consolidate capital spending.
  • Expanded R&D capacity: The combined talent of our engineering resources can be focused on R&D priorities such as a single search index and single advertising platform. Together we can unleash new levels of innovation, delivering enhanced user experiences, breakthroughs in search, and new advertising platform capabilities. Many of these breakthroughs are a function of an engineering scale that today neither of our companies has on its own.
  • Operational efficiencies: Eliminating redundant infrastructure and duplicative operating costs will improve the financial performance of the combined entity.
  • Emerging user experiences: Our combined ability to focus engineering resources that drive innovation in emerging scenarios such as video, mobile services, online commerce, social media, and social platforms is greatly enhanced.

Read the whole thing yourself.

Tags: Videogames
Microsoft's Letter To Yahoo
http://www.g4tv.com/thefeed/blog/post/682540/microsofts-letter-to-yahoo/
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