Winning in Business Realize your potential. By Boris Revsin.

The Yahoo + Microsoft Deal… and talk about lame.

In reference to the recent Microsoft + Yahoo Search deal.

I think what it comes down to is who got the WORST of this deal. Fine, so Microsoft just bought up the #2 search giant. So what? Yahoo isn’t #2 because they haven’t had enough time to win, because they have a better product but can’t take it to scale or because they own some special niche (other than old people - sweeet…). They are #2 because they have a sub-par product, weak management and a terrible marketing initiative.

So, yeah, cool. Microsoft now has more eyeballs. Eyeballs which should be looking at the cheapest, easiest to use product. That product is Google, not a combination of Microsoft & Yahoo. I respect that Microsoft mgmt is TRYING there best, but I really can’t agree that MSFT should be focusing on text search. That’s never been there bread and butter (Desktop Apps, right) and Google is a couple years away from sliding that rug out from under them. If MSFT really really focused on web-based enterprise software, I think they have the talent to win that battle.

In terms of search: people talk about taking things “viral”… MSFT has enough traction (obviously) to CREATE a MUCH better product and take it worldwide. I don’t think it needs to buy Yahoo to go viral with a BETTER product. In lame VC pitch terms, they’ve got all they need to “spark” a “hockey stick” curve.

So, who got the worst deal? Yahoo. That search engine business they had was the only chance they had to take a NEW engine/idea viral. They don’t have that anymore.