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February 18, 2008 9:59 AM PST
Gates: Microsoft targets Web with Yahoo or alone
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Gates, who called Microsoft's offer for Yahoo "very fair," said Google is the only company with "critical mass" in Web search. Microsoft needs a bigger piece of the market to create a more competitive and profitable Web search business.
"We can afford to make big investments in the engineering and marketing that needs to get done. We will do that with or without Yahoo," said Gates in an interview with Reuters.
"But we also see that we'd get there faster if the great engineering work that Yahoo has done and the great engineers there were part of the common effort," said Gates, who is Microsoft's biggest shareholder.
The two companies are at a stand-off in Microsoft's unsolicited bid to acquire Yahoo. Microsoft has offered to buy Yahoo for $31 a share in cash and stock, a bid which Yahoo's board rejected, saying it undervalued the company.
Microsoft countered by saying its offer was "full and fair," but did not say what it planned to do next. Analysts expect Microsoft to sweeten its bid, possibly to $35 a share, to clinch a deal.
"There is nothing new in terms of the process. We've sent our letter and we've reinforced that we consider that it's a very fair offer," said Gates, who remains the public face of Microsoft, even though he plans to switch to a part-time role at the company in June to focus on his philanthropic work.
Microsoft's stock has fallen 13 percent since its offer for Yahoo, reducing Microsoft's offer price to $29. Yahoo shares closed at $29.66 on the Nasdaq on Friday, indicating that investors expect Microsoft to raise its bid.
Story Copyright © 2008 Reuters Limited. All rights reserved.
"But we also see that we'd get there faster if the great engineering work that Yahoo has done and the great engineers there were part of the common effort," said Gates, who is Microsoft's biggest shareholder.
What's this about common effort?
If that means that Micorosft becomes a recognisable player on the Internet, then "common effort" will be bad for the consumer.
Look at their history with the Windows platform. Secret APIs that they had access too, disabling competitors products, expensive price, and copying/stealing/bundling other peoples stuff/ideas.
Let's hope we never see Microsoft bringing that sort of behaviour to the Internet platform. Chances are Google will keep it's market share and so far they have been a good team player by working well with others, even smaller players like me.
Could you ever imagine Microsoft coming up with Adsense? It would have never happened if they were no1 on the Net. They are only interested in making money for their coffers and do not care nor understand what the Internet is really about.
Go Google. So far I think you guys have been good for the Internet.
MS should take that money and shore up it's "Live" offerings, recruit new employees for the seach and advertisement side of the business but most of all....
START MARKETING "LIVE" TO A WIDER AUDIENCE!
Tell the what "Live" is and what it can do.
"Live" does not have brand recognition yet and will never have a broad following until MS starts marketing it to everyone!
Saturate the airwaves, get to the common non-IT person that does not follow or care about IT internals. Make it simple for the masses to understand.