Google Makes Bid For Yahoo Rescue

Shortly after the Microsoft hostile takeover bid was announced, Google contacted Yahoo to discuss possibly banding together for a bail out. If the choice is between two monopolies, Google or Microsoft, I'd want Yahoo to go with Google. Mainly because replacing Microsoft with Google would at least give it backing of a company that "gets" the Internet, as opposed to one that struggles against even the most basic compliance with web standards.

Yahoo's search engine has always been terrible at producing relevant results. With Google as a potential business partner, Yahoo could dump the terrible search engine like it dumped its music service, merge its email into the Gmail system, and concentrate on what it does best – social applications like Yahoo Groups, Flickr, and others. Yahoo's strong point has always been in understanding fun ways to bring people together, and a partnership with Google would give it a way to enhance that.

Microsoft, on the other hand, is the worst possible business partner for Yahoo in my opinion. It doesn't understand what its customers want. It has no sense of fun. It refuses to make Internet Explorer compatible with internet standards. It refuses to detach Internet Explorer from its operating system so that it can be a portable browser. It uses invasive business techniques against its own customers whenever possible, offers over prices proprietary software solutions, and generally remains out of touch with the Web 2.0 Internet and what the people who use it want.

Mark Mahaney, an analyst for Citigroup, estimated that the switch could add 25 percent to Yahoo's cash flow, bolstering its finances and potentially its stock price, as part of an effort by Yahoo to remain an independent company.

Between the offer of help from Google (not entirely altruistic, since Google stands to make a tidy sum from running ads on the Yahoo network) and rumors of News Corp scrambling to get in on the action as well, Microsoft may not have the slam dunk takeover it was hoping for. Personally, I'd rather see either News Corp or Google bail Yahoo out than see Microsoft have any more sway over the technological world than it already does. At least News Corp is strong in the multi media entertainment industry and Google has web knowledge, making them both a slightly better fit for the job of saving the fumbling yodel.

UPDATE 2/4/08: News Corp has finally responded to the persistent questions bout a possible Yahoo bail out with a categorical denial , leaving the only contenders Google and Microsoft.