Google Questions Merger

[ech0]

It shouldn't come as a surprise to readers that the folks over at Google might not be totally stoked on the potential merger of Microsoft and Yahoo!. If you weren't sure where the company stood on the issue, you can now get clued in thanks to a post on the official Google Blog earlier today. David Drummond, senior VP of corporate development (and the company's chief legal officer) says that he worries the acquisition of the internet portal by a company that has "frequently sought to establish proprietary monopolies" could "extend unfair practices from browsers and operating systems to the internet." His concern centers around the possibility that the combination of the two monoliths could "unfairly limit the ability of consumers to freely access competitors' email, IM, and web-based services." Sure, Google has more than a little stake in seeing fair play on the net (gotta keep those ad revenues up), but this is serious food for thought nonetheless.

Update: It looks like the war of words is really starting to heat up. Brad Smith, general counsel for Microsoft, has issued his own little statement here, telling us that Google holds far more marketshare when it comes to internet searching than a combined Microsoft and Yahoo! possibly could, and then going on to explain that the Redmond giant is "committed to openness, innovation, and the protection of privacy." Uh, whatever you say Brad.

It would be crazy for Yahoo! not to except the deal, atleast in IMO. Its just far too much money to pass up and both Microsoft and Yahoo! are being killed by Google in the advertising department. The acquisition would extend Microsofts monopoly, but it can't determine what email, IM, or web based services people choose. But we are all sure as hell positive Google isn't very happy by this.

LiNk

[BLAZE86]

WtHz.. What would happen to my anonymousness I get out of my yahoo email account~ ha

[Craig]

I agree...this deal is going to happen (if) the justice dept allows it. Yahoo would be insane not to take the cash infusion and become the massive force that this would create.

[Craig]

Google's response: Official Google Blog: Yahoo! and the future of the Internet

The openness of the Internet is what made Google -- and Yahoo! -- possible. A good idea that users find useful spreads quickly. Businesses can be created around the idea. Users benefit from constant innovation. It's what makes the Internet such an exciting place.

So Microsoft's hostile bid for Yahoo! raises troubling questions. This is about more than simply a financial transaction, one company taking over another. It's about preserving the underlying principles of the Internet: openness and innovation.

Could Microsoft now attempt to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC? While the Internet rewards competitive innovation, Microsoft has frequently sought to establish proprietary monopolies -- and then leverage its dominance into new, adjacent markets.

Could the acquisition of Yahoo! allow Microsoft -- despite its legacy of serious legal and regulatory offenses -- to extend unfair practices from browsers and operating systems to the Internet? In addition, Microsoft plus Yahoo! equals an overwhelming share of instant messaging and web email accounts. And between them, the two companies operate the two most heavily trafficked portals on the Internet. Could a combination of the two take advantage of a PC software monopoly to unfairly limit the ability of consumers to freely access competitors' email, IM, and web-based services? Policymakers around the world need to ask these questions -- and consumers deserve satisfying answers.

This hostile bid was announced on Friday, so there is plenty of time for these questions to be thoroughly addressed. We take Internet openness, choice and innovation seriously. They are the core of our culture. We believe that the interests of Internet users come first -- and should come first -- as the merits of this proposed acquisition are examined and alternatives explored.

[Teck]

MS + Yahoo = Bad for most internet users...

The bottom line is 99% of the stuff MS pumps out is horse shit, probably 70% of what Yahoo pumps out is dog shit, as far as Google, I still haven't seen a Google innovation or product I haven't liked.. (Note: These percentages are me counting the last 10 products i've seen from each company... I did like a very small portion of one of MS's products so thats why it wasnt 100%)

Now if MS controls Yahoo they will begin to pump out products for Windows OS's which uses Yahoo's... omg I cant even finish ZOMG!

[CoffeeShark]

oh cry for me, Google. The largest search engine, by far, and they're crying about the future possibilities of email and portals, two things Google is very involved in. No conflict there.

nothing like some pre-emptive calls for monopoly watch. Yahoo doesn't "extend Microsoft's monopoly", because there is no monopoly in that area, unless Yahoo is publishing an OS I'm unaware of.

Is it not innovation to tie in products, make ease of use for customers, single log-in, etc? No, only when anyone-but-MS does it.

oh boohoo for the Google billionaires. jesus h montgomery christ, let's handcuff Microsoft until they can't even publish a full operating system without allowing other companies access to the kernel.

[SonicSpeed]

I don't think its that bad... the Engadget article is completely biased against the deal anyway.

Here's what I see. If this deal goes through, it would be great for Yahoo! since they are already boarding the failboat at this point. However, it would mean big litigation for Microsoft. The EU already thinks Windoze is terribad for including Windows Media Player (even though Apple has iTunes), so if M$ dare included the Yahoo! Widgets (formerly Konfabulator) into Windoze then the EU would freak out even more.

As for Google's Blog, I think they are just trying to get people against MS since they realize that they would have their two biggest opponents combined (although that is still less than their market share).

[YankeeDeuce]

I agree with teck. Gmail is 100x better than hotmail or yahoo, google apps for your domain is great, google talk is great because it's just Jabber, meaning you can talk to anyone that has a Jabber/xmpp account. What would be really great is if Google integrated OpenID into gmail/gayd.

[YankeeDeuce]

just saw this on /.

"Reuters is reporting that Yahoo might consider a business alliance with Google as a way to top a $44.6 billion takeover proposal by Microsoft. 'Yahoo management is considering revisiting talks it held with Google several months ago on an alliance as an alternative to Microsoft's bid, that source said. At $31 a share, Yahoo believes the bid undervalues the company, two sources said. A second source close to Yahoo said it had received a procession of preliminary contacts by media, technology, telephone and financial companies. But the source said they were unaware whether any alternative bid was in the offing.'"

[VincentVega]

Yahoo needs to shut the f@@k up and take the offer, because their presence has done nothing but dwindle, and it will continue to do so because of unstoppable internal bleeding. greedy bastards