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May 5, 2008 10:53 AM PDT

SAP CEO: Microsoft should buy Yahoo

Posted by Dan Farber

SAP CEO Henning Kagermann has some advice for how Microsoft CEO Steve Ballmer should spend $45 to $50 billion.

"I'd encourage him to spend it on Yahoo. For Microsoft, the challenges are more on the side of the consumer space, not the enterprise space," said Kagermann.

While Ballmer walked away from Yahoo over the asking price and other issues, he might be back if Yahoo fails to show that it can gain momentum.

Kagermann was speaking at SAP's Sapphire conference in Orlando, Fla. ZDNet's Larry Dignan captured the action. Kagermann speculated that Microsoft wouldn't have made the offer if it didn't have a good handle on how to integrate the two companies.

In 2004, Microsoft and SAP were in talks to merge but nothing came of it. It could be that Kagermann hopes that Microsoft acquires Yahoo so it will be distracted with the merger and not get any ideas about trespassing on SAP's enterprise software territory.

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Add a Comment (Log in or register) 5 comments (Page 1 of 1)
by MadLyb May 5, 2008 11:51 AM PDT
Of course, he would say that since it keeps MS's warchest tied up and not being used to buy other companies...say...like...SAP?
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by Solaris_User May 5, 2008 12:22 PM PDT
Why should MS buy Yahoo again? Are they that desperate to get yet another failing brand?
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by AppleRocks1963 May 5, 2008 1:14 PM PDT
The WSJ had a good line about this deal: "It's like tying two rocks together in the hope they will float."
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by rbanffy May 5, 2008 1:56 PM PDT
Microsoft should buy Yahoo, whatever the cost. I would miss Yahoo, but a gigantic blunder like that could finally spell doom for Microsoft. That's too good a chance to miss.
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by i_made_this May 5, 2008 4:20 PM PDT
"In 2004, Microsoft and SAP were in talks to merge but nothing came of it. It could be that Kagermann hopes that Microsoft acquires Yahoo so it will be distracted with the merger and not get any ideas about trespassing on SAP's enterprise software territory." Dan, this is the key to the article but you don't elaborate at all. FWIW, MSFT has already "trespassed [deeply] on SAP's enterprise software territory" - MSFT started to do so a few years ago when they got the cold shoulder from European Regulators about buying SAP. The key critique of your article (or blog) is that the real story about Kagermann's quote, as C|Net's expert journalists like yourself certainly know, has nothing = zero - zip - zilch = to do with Yahoo. Please give us that real story. Thanks!:)
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  • About Outside the Lines

  • Dan Farber is the editor in chief of CNET News. He has covered technology for more than two decades, and previously served as editor in chief of ZDNet, PCWeek and Macweek. Outside the Lines explores the intersection of business and technology.

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