Hey Microsoft, I've Got A Better Idea 8 comments
-
Font Size:
-
Print
- TweetThis
The question remains whether Microsoft (MSFT) is entirely serious in its bid to acquire Yahoo! (YHOO). Some will surely say that it is. Others might speculate it was a strategic tactic to observe the reactions of its key competitors, specifically Google (GOOG). In my opinion, Microsoft should walk away from Yahoo! and focus on competing directly with Google, Apple (AAPL) and News Corp. (NWS) in the areas where it does not have presence, specifically web video.
Microsoft should buy CBS (CBS). CBS is the only independent major broadcast network easily acquirable. NBC is owned by General Electric (GE). ABC is owned by Disney (DIS). Fox is owned by News Corp. CBS was split from Viacom (VIA) in 2005 and now owns broadcasting, television production operations, outdoor advertising, Showtime, and Simon & Schuster. The outdoor advertising and publishing business are of no real utility to Microsoft. Each could be sold or spun-off.
On the other hand, CBS broadcasting and production operations, and Showtime offer Microsoft a dynamic content creation machine to establish a credible web video presence. Microsoft could develop a web video site a-la YouTube with CBS content as the anchor and complemented by user-generated content. The video portal would serve as a place for Microsoft to acquire and showcase independent vlogs like WallStrip (already owned by CBS) and whatever else emerges.
Microsoft could make this web video portal the core of its Xbox Live media offering. This would establish a credible alternative to Google’s YouTube and Apple’s iTunes.
Microsoft could do the deal in cash, even assuming CBS’s substantial debt. Heck, Microsoft should offer the same exact premium to CBS shareholders as its now offering to Yahoo!
If Microsoft wants to do something to shake-up the internet, and more importantly itself, it needs to think outside the box. Yahoo! offers precious little to change the direction of Microsoft. Microsoft needs to build a media brand to effectively compete against Google, Apple and News Corp. in the online advertising space.
So Steve Ballmer, forget Yahoo! Have a math camp with CBS executives. Besides, MicroHoo is an awful nickname.
Related Articles
|
-
The Seeking Alpha 100
See allThe top 100 stock
market authors
selected for publication
Seeking Alpha 100 » -
Fastest Climbers
Authors with the largestSee all
increase in followers
in the last 7 days
Fastest Climbers » -
Top Commenters
Top commenters,See all
as ranked by their peers
Top Commenters » -
Top Instabloggers
The 100 most active
Instabloggers.-
1
David Fry
-
2
TraderMark
-
3
Don Dion
-
4
Cliff Wachtel
-
5
Mike Havrilla
Top Instabloggers » -
1
-
Top StockTalkers
TopSee all
StockTalkers.
Top StockTalkers »
This article has 8 comments:
Oh yeah, I can't wait.
There are reasons that Yahoo, Google, and Apple are doing so well, and those reasons come from Microsoft. I don't see them going away.
Remember "Wintel"; Windows-Intel. We are entering the "Goopple" era; Google-Apple.
Does not, is not will not.
Think an ad-supported Apple TV.
Think an ad-supported Apple TV."
Except that Apple tends to "go light" on intrusive ads.
They are incapable of doing anything new.
Its important to remember that M$ were successful when computing was new - now that its a mature market, their Windows OS is exposed as a giant hack.
Although they are still making billions every year, they are also losing billions on EVERY product except Office and Windows.
Ballmer is a ridiculous figure as a CEO - they need to find someone much younger, who can think clearly, but they wont do that.
They just cant change. Thats why they are doomed.
So you propose they buy another network? For a company that was convicted of illegal monopoly, and not even punished, they surely should not be allowed to buy other major corporations, that's just insane.