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Sat, Nov 21, 2009 - 06:03 PM EST  —  AAPL: 199.92 (-0.59, -0.29%)  |  NASDAQ: 2146.04 (-10.78, -0.5%)

Ballmer’s Folly ends: Microsoft abandons Yahoo bid because of Google
Saturday, May 03, 2008 - 11:24 PM EST

"Google proved to be the final straw that broke Microsoft CEO Steve Ballmer's back," Yi-Wyn Yen reports for Fortune.

"After weeks of threatening Yahoo that the software giant would attempt a hostile takeover if the company refused its bid, Ballmer explained Saturday why he decided to withdraw his offer for the Internet portal. He was walking away because of his archrival Google," Yen reports,

"Yahoo would become 'undesirable' if it formed an alliance with Google, Ballmer said in a statement. Last month, Yahoo had outsourced some of its search advertising results to Google in a two-week trial. The Internet portal said it was considering a long-term partnership with Google and that a deal could be announced as early as next week, a source familiar with the matter said," Yen reports.

Full article here.

MacDailyNews Take: Excerpts from a BusinessWeek interview with Apple CEO Steve Jobs, October 12, 2004:

Steve Jobs: Apple had a monopoly on the graphical user interface for almost 10 years. That's a long time. And how are monopolies lost? Think about it. Some very good product people invent some very good products, and the company achieves a monopoly. But after that, the product people aren't the ones that drive the company forward anymore. It's the marketing guys or the ones who expand the business into Latin America or whatever. Because what's the point of focusing on making the product even better when the only company you can take business from is yourself? So a different group of people start to move up. And who usually ends up running the show? The sales guy... Then one day, the monopoly expires for whatever reason. But by then the best product people have left, or they're no longer listened to. And so the company goes through this tumultuous time, and it either survives or it doesn't.

BusinessWeek: Is this common in the industry?
Steve Jobs: Look at Microsoft -- who's running Microsoft?

BusinessWeek: Steve Ballmer.
Steve Jobs: Right, the sales guy. Case closed.

Source: The Seed of Apple's Innovation


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May 03, 08 - 10:28 pm Comment from: aCe

I highly doubt that is the sole reason...

May 03, 08 - 10:30 pm Comment from: Tom V

Finally!

May 03, 08 - 10:31 pm Comment from: Good

Good, now I can continue using Yahoo without worrying about it going to hell after a Microsoft acquisition. grin

May 03, 08 - 10:47 pm Comment from: macuser

MDN
Thanks for reminding the old Jobs Interview. it is very appropriate here...

I love Jobs's thinking.

now I can use my yahoo id without worrying about microsoft

May 03, 08 - 10:48 pm Comment from: BiZarRo BaLlmEr

Ballmer: "Yahoo has cooties"

*runs away*

May 03, 08 - 10:52 pm Comment from: Gabriel

*whew*

I realize Yahoo's future is still somewhat uncertain, but at least Yahoo's properties and open-source efforts won't be usurped/destroyed by Microsoft. The internet is better off with an independent Yahoo.

May 03, 08 - 11:04 pm Comment from: Rip0ff

And, once more and whatever the reasons, Ballmer made a fool out of himself... When will he stop?

May 03, 08 - 11:06 pm Comment from: sparkplug

Don't forget that you are dealing with the Borg. These soulless creatures are more tenacious than starving pit bulls at a wiener roast.

Come Monday, Yahoo! stock takes a big dive.

Yahoo! shareholders are none too pleased.

The Borg lets the kettle boil and then returns later with an offer significantly above Yahoo!'s lower stock price, but below what the Borg previously offered. Yahoo! stockholders pressure Yang to take it while he can.

Monkey Boy dances screaming: "Dividends, Dividends, Dividends!" Scary, huh?

May 03, 08 - 11:13 pm Comment from: not fooled

There's NO way MS backed down over a Yahoo/Google alliance.

Ballmer is being surprisingly modest. Something happened. I'm betting some adult supervision somewhere (the bankers, the lawyers, MS's own board) finally stood up to him.

If anyone's watching this, it should be Steve Jobs. As screwed up as MS is, this means they aren't completely clueless.

May 03, 08 - 11:15 pm Comment from: Gabriel

@ sparkplug

Drat… my relief overwhelmed my critical thinking, you unfortunately paint a likely scenario. There was even a recent story I read about how Microsoft could step away from the deal for the time being, then pick up Yahoo on the cheap a year or so from now if things go badly in Sunnyvale. Sadly, that's still a possible future…

May 03, 08 - 11:32 pm Comment from: the Carrot Man

Means nothing.
Microsoft are still clueless because they dont need to be anything but clueless.

Yahoo is still a sick-ish puppy and Vista still sucks big time.

Yahoo is a portal - portals are meaningless. No longer relevant.
Google is a true search engine - software driven, BIG upside.
Apple has a real set of people that can innovate, can engineer, can THINK. BIG upside.
Microsoft are a dying giant who have stopped the evolution of computing to the point where they need to f**k off.
Massive downside.

Enough with the yapping - let Google and Apple take computing to the next step - let the rest bugger off.

May 03, 08 - 11:36 pm Comment from: MizuInOz

Let's just imagine - stay with me - imagination is sometimes fun!

Ballmer's folly really is his undoing - unless he is undoing all of the zippers in the bored room... (mis-spelling is intentional) and he is caught mis-speaking one too many times. And the board asks him to quietly resign - as he is ALWAYS quiet. cheese

So he tenders his resignation and all of the developers breath a sigh of relief and begin migrating to iPhone and OS X development.

Jobs has pity upon Monkey Boy and hires him to be the "Microsoft Start Your Copiers" poster boy for ----

Wait for it...

$1 a year.

The Apple Board feels the price is too high and encourages Mr. Jobs Sir to not hire him.

Ballmer spends his $8 Billion on help from Dr. Phil (two sessions) and begins to languish in self-pity until Guy Kawasaki tells him about the net potential race for mankind - space - as in the space between Ballmer's ears. (None - all filled with bouncing monkey fat).

Ballmer finally gets a Job with his old buddy Paul Allen and his new master - Sir Richard Branson and becomes the new test monkey for the private space race.

Isn't imagination fun... Anyone want to continue? tongue wink


(OBTW - on topic) I was ready to migrate all of my Yahoo email and registrations to G-Mail... but I will wait a little longer and then maybe to runbox instead - no snooping in Scandinavian webmail boxes allowed by law. tongue wink

May 03, 08 - 11:44 pm Comment from: ABMer 001

Ballmer has only stepped away for a moment. He will try later — for less money.

But, later might be too late. Yahoo might find some strength. Enough to repel MS.

This deal is only good if it ALSO takes down MS. Collateral damage of Yahoo, but MS is destroyed.

Anything But MS!

May 03, 08 - 11:48 pm Comment from: tz

Darn, I wanted to see them pull each other down the drain together.
I especially wanted to see M$ waste all their money on the deal.
:(

May 03, 08 - 11:55 pm Comment from: John

What a relief. If MS took over Yahoo, they would have screwed it all up. Probably would have added fees to use the service.

May 04, 08 - 12:09 am Comment from: oh no my shorts

What's really depressing about this is that Microsoft has realized they don't need to buy Yahoo to be successful. They've found someone higher up the food chain and they've already bought them:

DNCC names Microsoft Official Software Provider

Ladies and gentlemen, meet the official software providers of the 2008-2012 White House. Microsoft will get cozy with the Dems and the country is once again fscked.

How could this happen with Al Gore on the Apple Board?

May 04, 08 - 12:10 am Comment from: HMCIV

Thank God! (I hope anyway.) Personally I've never been a fan of Yahoo, but the internet would have been SCREWED if that merger had gone through.

May 04, 08 - 12:17 am Comment from: oh no my shorts

To get the gig for the Democratic National Convention, Microsoft must've gotten to somebody very high up in the Democratic party.

What do you bet that if a Democrat is elected (ever seena surer thing?), then for the next four years, Microsoft has a very easy ride with respect to anti-trust issues, DRM, Computer Online Forensic Evidence Extractor, and generally advancing their evil agenda?

Great. Microsoft gave up on buying Yahoo and instead has bought the US Government.

May 04, 08 - 12:28 am Comment from: Darth Avenus

Google's involvement is just an excuse for sales guy Ballmer, who'll end up like John Akers at IBM did. This will ultimately turn out to be one of those "the bigger they are the harder they fall" stories in business. Yes, M$ is already declining. Its software will implode at the Democratic convention in Denver. In Chicago, you had Daley's police. In Denver, it will be M$ software.

May 04, 08 - 12:54 am Comment from: TheConfuzed1

@oh no my shorts--

Here's an idea... Keep the politics out of this discussion; they don't belong here. No one is here because they want to read about your version of the way you think the future is going to be in the US. By the way, this is a global site, so many of the people here aren't even from the US.

Also, just because Mac users have been stereotyped as being liberals, doesn't mean that we all share your view.

That being said, it ain't gonna happen. Hillary and Obama are going to continue destroying each other, and McCain is going to swipe it when they're not looking. Only since you brought it up though and asked the question, "ever seena surer thing?"

However, I don't really care to discuss this here. I come here for Mac news. Hey, I just noticed... The title here is Mac Daily News!!! I guess I came to the right place after all, eh?

May 04, 08 - 01:16 am Comment from: oh no my shorts

@TheConfuzed1

Hey, you're right! This is Mac Daily News!

That's why we're all here reading about... Microsoft!

It's just as relevant. If you don't like it, don't read it.

May 04, 08 - 01:19 am Comment from: oh no my shorts

BTW, confused1 --

With Al Gore involved in the Democratic party and also sitting on Apple's Board of Directors, I think that Microsoft getting to be the official Software Provider of the DNC is a perfectly valid topic for this site.

May 04, 08 - 02:14 am Comment from: oh no my shorts

@TheConfuzed1

I have to tell you, the more I read your idiotic post, the angrier I get.

Who are you to tell me to leave politics out and stick with Mac topics... in a thread in which Apple and the Mac are conspicuously absent? Go ahead, re-read the main article. Before the MDN take, there is absolutely nothing about Apple or the Mac.

If you don't like politics, that's fine. You want to read about Macs, that's fine too. But this particular thread is about Microsoft, Yahoo and Google. There's nothing here for people looking for Mac news.

You knew that when you began reading this thread. You knew it was all going to be about MS, Yahoo and Google. So -- if all you care about is Mac news -- why are you reading this thread?

On the other hand, my post -- how did Microsoft become the Official Software Provider of the Democratic National Convention when Al Gore, a noted Democrat and former Presidential candidate, sits on the Apple Board, is on-topic and quite relevant to the conversation. It even brings Apple into the mix where they were not before.

> Also, just because Mac users have been stereotyped as being liberals, doesn't mean that we all share your view.

You don't know my political leanings and I didn't give you enough information to make an intelligent judgement. You've made a very poorly-considered assumption.

Take your sanctimonious attitude and stuff it, confuzed1!

May 04, 08 - 03:12 am Comment from: for god's sake

first of, like we all couldn't figure out that microsoft was going to pull out of this when they didn't react to yahoo not responding to the bid by their last deadline. common sense people. a prolonged hostile bid for yahoo, and the horror that vista is would've put microsoft in a tail spin.

secondly, what are all the repubs on this site gonna say if microsoft provides all the tech for the republican convention? would you be saying the same "the sky is falling" crap that's been spilling like the exxon valdes (sp) since the microsoft/dem convention article was posted? give it a break already.

just cause al gore sits on the apple board doesn't mean that apple is required to offer any tech support to the dem convention. period. it would distract from what apple does best: creating the best computers and digital platforms on the planet.

as it is, the democrats probably put an rfp out for the tech work and microsoft came in with the best bid. are you dumb enough to believe that the democrats knocked on microsoft's door and said "hey we want you to do this"? i doubt this was a "no contest" bid such as we've seen in the case of halliburton. i'm certain if ibm was providing this service people on this board would be bitching about ibm's inability, and unwilligness, to supply a laptop g5 processor for apple.

putting on a conference costs a lot of money. the producers of the conference are going to want to save as much of it as possible, so they're going to go with the lowest bid that meets their needs. pure economics people.

i for one am glad that this whole microsoft buying yahoo crap is over; now microsoft can go forward producing bloatware and yahoo can get its act together.

May 04, 08 - 03:12 am Comment from: HolyMackerel

Yahoo walks away with $billions in 'advertising' having been mentioned in the News reports for the past few weeks with all their services mentioned as desirable, at least by MS. Yahoo is now in people's mindsets.

May 04, 08 - 03:45 am Comment from: almux

Hopefully M$'s missleaded Billyfans will now start to understand that M$ "supreme power over all" is now just OVER... Asta la Vista poor internet terrorist and proud monopolist!

@oh no my shorts
At least with GW Bush USA gained to make another crazy war and managed to pile up hatred instead of the friendship of the world! If you think Al Gore is so bad... He yet impossibly could have done worse!

May 04, 08 - 03:54 am Comment from: RonJeremy

How strong is Ballmers position as CEO in M$? ..'cause this Yahoo thing made him look really silly.

Here is a novel idea: how about hireing Jobs as CEO in M$? smile

May 04, 08 - 04:01 am Comment from: Yours Smugly

I thank Steve Ballmer for prolonging my life. Every time I think about him, I laugh.

May 04, 08 - 04:31 am Comment from: Afib

TheConfused1:

You won't follow the exact advice that you gave to "oh no my shorts". You are pathetic.

May 04, 08 - 05:33 am Comment from: LinuxGuyAndMacProdigalSon

Too bad. If the hubris afflicted Ballmer went through with his threats, Microsoft would have been severely damaged. Two crappy search engines to go against Google would have been impossible to make work.

May 04, 08 - 05:52 am Comment from: d'nomder

What do you bet that if a Democrat is elected (ever seena surer thing?), then for the next four years, Microsoft has a very easy ride

Remember, MS only landed the DNC gig. MS now has to deliver.

Things might not be so cozy when MS's crapware blue-screens at prime-time, both embarrassing the Dems on a national stage & forcing them to scramble a Plan B.

Then again, perhaps that's the intention. From the news link:

The software giant is charged with bringing technologies and applications to the Democratic National Convention for delegates, media and members of the public to track items such as various votes during the event.

Gotta wonder if choosing MS is some way of making sure we don't see the votes being cast.

May 04, 08 - 06:13 am Comment from: bioness

I guess Bill Gates is in some ways much better than balmer

May 04, 08 - 06:41 am Comment from: Hm...

@ All who have decided to make this a political topic

I urge you to read a little from Samuel Johnson
     “It is better to remain silent and be thought a fool, than open one's mouth and remove all doubt.”

After reading several posts, many of the doubts I had have been removed.

May 04, 08 - 07:19 am Comment from: therepguy

Let's all thank are luck stars that this mad man didn't get Yahoo!

May 04, 08 - 07:44 am Comment from: JAYGEE

What did Bill Gates think about the Microsoft-Yahoo merger? Maybe Gates thought enough is enough, and told Ballmer to forget it?

May 04, 08 - 08:24 am Comment from: January 24, 1984

@Good: I had the same issue.

May 04, 08 - 09:05 am Comment from: Too Hot!

What's "Yahoo!"?

wink

May 04, 08 - 09:36 am Comment from: LOL

M$ = what is wrong with unbridled capitalism.
M$ is self-destructing thanks to Ballsy.

May 04, 08 - 09:38 am Comment from: Noodle-Armed Choir Boy

I'm trying to figure this out;

WHY did Microsoft want to own Yahoo?
- What would that have done for MS?
Did Microsoft see how Apple and Google are cozy, and think, "Gee, what's better than being being COZY with a search engine? Oh, OWNING one! We'll be better than Apple by BUYING a search engine, improving it in the typical MS way, and filling the search engine with proprietary MS features and DRM-friendly code!"
Was that it?

Okay, so then this: "Yahoo would become 'undesirable' if it formed an alliance with Google', Ballmer said ..."
But, if MS OWNED Yahoo, wouldn't Yahoo do what its owners want, and not ally with Google if MS thought it was a bad idea?

Like others have posted, I think there's more to Ballmer's re-decision. But I'm mystified as to the whole premise of this story.

Enlightenment, anyone?
Bueller?

May 04, 08 - 09:48 am Comment from: Jobs's folly

That Jobs interview is stupid. First he asks, "And how are monopolies lost?" and later he says, "Then one day, the monopoly expires for whatever reason." He never answered his own question!

Also note that Jobs *IS* the sales guy! The Woz was the product person. Steve Jobs is neither a hardware engineer nor a software engineer. He's the guy who goes on stage or on TV and sells Apple.

May 04, 08 - 09:56 am Comment from: last to know

Enlightenment, anyone?

Yes. Is anybody here monitoring the regular MS boards? What's the buzz, the REAL story behind this?

MS doesn't give up on anything this easily.

May 04, 08 - 10:13 am Comment from: not fooled

He's the guy who goes on stage or on TV and sells Apple.

Nice try.

Study Jobs sometime. He's both a product engineer and salesman; he's actively involved in designing the products he has to sell. Jobs has an unmatched capacity of spotting winning ideas, and the ability to drive top-notch people into perfecting those ideas. His on-stage sell is a nice bonus.

Ballmer, OTOH, is the polar opposite of Jobs. He'd be an unemployed, lousy used car salesman today (complete with chicken suit) if it weren't for a fateful dorm room assignment.

May 04, 08 - 10:38 am Comment from: ichi

@MizuInOz

yeah but Runbox is $50. per year, i would expect privacy.

May 04, 08 - 10:58 am Comment from: justified

@Jobs's folly,

Uh, actually, Woz was the technology person. Jobs was into making products. That's where they had their differences.

Jobs never held a sales position. And he's never hocked products on TV. Delivering keynotes is standard practice for CEOs and is not the same thing as sales. Making great deals to buy and sell for your company is standard practice for CEOs and is not the same thing as sales.

Ballmer, on the other hand, held administration, sales and marketing positions at Microsoft. That IS the same thing as sales. Now, he happens to be CEO. But that's another story.

Learn business.

May 04, 08 - 11:10 am Comment from: GrimReaper

So Ballmer is the "sales person", does he know anything about programming or OS's?

May 04, 08 - 11:19 am Comment from: Ampar

From Afib to TheConfused1:

"You won't follow the exact advice that you gave to "oh no my shorts". You are pathetic."

Pot meet kettle.

May 04, 08 - 11:21 am Comment from: Petey

I just love those Steve Jobs quotes - they are so accurate.

He amazes me everytime - he seems to have a crystal ball for a brain.

He truly is one hell of a genius!

May 04, 08 - 11:37 am Comment from: Madmax

Ballmer is a serial bungler - like Gordon Brown, the replacement for Tony Blair.

Promoting the deputy instead of getting in fresh blood doesn't always go the way you hope.

May 04, 08 - 12:43 pm Comment from: garymac

I say... 3 Cheers for Jerry Yang!

May 04, 08 - 01:39 pm Comment from: neomonkey

Ballmer's reign has coincided with the other big dunderhead, GWB. Hopefully David Kowalski will do another version of "It's A Blunderful Life" starring Steve Ballmer, dealing with how the evolution of computing would have been different without Ballmer.

http://www.davidkowalski.com/

May 04, 08 - 02:23 pm Comment from: Macs King

What a crock. Ballmer just got cold feet cause their stock is tanking, their OS sux, and really, what was the point in spending all these billions on Yahoo anyway? Microslop would have just screwed it up and pissed away all that money in the process.

Face it MS, you're NO Google! You would not know what to do with it if you had it.

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