Saturday, February 02, 2008

Microsoft and Yahoo: Will Your Favorite Service Disappear?


While the marriage of Microsoft and Yahoo may make sense for the online advertising fortunes of both companies, what's to become of all the services the two companies have in common?
If you've gotten used to Yahoo Mail, Yahoo Finance, or Yahoo Groups, you have to be wondering if those would go away or become MSN services with a Microsoft acquisition. Will Yahoo's Messenger instant messaging, for instance, vanish and become part of MSN Messenger IM?

There are many more examples of Yahoo services that overlap with Microsoft services, including Yahoo News, Mail, Maps, Mobile, Shopping, and Travel. Some of Yahoo's acquired properties may be considered overlaps, too--sites likethe Flickr photo siteand theMusicMatchsite. The list of services goes on and on--both companies have nurtured massive internet portals with tons of separate services.

Analysts , says Microsoft should think twice before shutting down or slapping an MSN label on the Yahoo services. "In general, I think Microsoft would be well advised to keep the Yahoo brand, and merge their media properties--i.e.,MSNand theWindows Live services--into Yahoo." "That's because Yahoo is a stronger brand in the media world, and also their services are, for the most part, bigger than Microsoft's," Weide explains.
The truth is, nobody really knows what Microsoft would do with all the Yahoo services if an acquisition takes place.

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