Monday, June 16, 2008

Threesomes Rarely Work For Long - Google/Yahoo/Microsoft

OK so maybe Microsoft (MSFT) pulled away from Yahoo (YHOO) and Google (GOOG) thinks it may now control the on line ad world. Carl Icahn wants to administer a corporate spanking to Yahoo. Balmer is looking pretty good for not overpaying (a rarity in M&A) Google is probably thinking now what. Because if we control everything there are no more excuses.

These three have formed a threesome just through their implied powers, attributes and other fantasies held by the marketplace. The financial press and media are looking at these three as they relate to one another. No one industry in the history of business and commerce has allowed a combined entity this powerful to survive for long. The simple reason is that it will have too much power over marketing.

The western world and increasing parts of the developing world are consumer driven. This means marketing is key. Millions of highly skilled professionals cannot be replaced by Google’s Algorithm (s). By virtue of the fact that there is a logic in the algorithm, refined and updated as it is, means that your product marketing strategy will be define by what Google says is working and not working.