The creator of the law of unintended consequences must have had the scramble to merge with or buy Yahoo! (NASDAQ: YHOO) in mind. Google (NASDAQ: GOOG) gets daily benefit from the fighting and should garner an additional edge over the next year or two.
The professors who pen business school text books from their campus offices at Harvard and Wharton are in agreement that mergers rarely work. The list of reasons is always long. Distractions. Culture clashes. Poor estimates of savings. And, the most lame-brained of all–synergy.
The Microsoft (NASDAQ: MSFT) ideas for buying Yahoo! at a price well above the market may have turned out to be brilliant. Redmond is a lap down in the race to be a big internet player. Buying Yahoo! would put it into the No.2 spot in search advertising and the first place for inventory in the online display ad space. There were certainly plenty of people to fire, so the odds of savings were fairly certain.
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