by Matt Asay

Microsoft looking to buy Yahoo! (?)

analysis
May 5, 20071 min

That's what The New York Post is reporting, with Nick Carr providing local color. Buying Yahoo would represent a hugely risky bet for Microsoft, as both companies have been struggling with the management of their internet businesses, losing search and advertising share to Google. Combining two weak performers rarely produces a strong performer.This is the same lesson that United Linux (remember that?) teaches, a

That’s what The New York Post is reporting, with Nick Carr providing local color.

Buying Yahoo would represent a hugely risky bet for Microsoft, as both companies have been struggling with the management of their internet businesses, losing search and advertising share to Google. Combining two weak performers rarely produces a strong performer.

This is the same lesson that United Linux (remember that?) teaches, as well as countless other examples. Two negatives may make a positive in multiplication (Do not NOT lose to Google!), but the same math rarely applies to M&A.