Microsoft + Yahoo: Good for Windows Mobile, Bad for Microsoft.

Now that we've had some time to mull over the Microsoft offer near-hostile take over attempt on Yahoo, we're fast becoming skeptical. Don't get us wrong, we agree with Segan, Zeman, Woyke, and many others that the merger creates stupendous new opportunities in the mobile space. If were were only looking at Windows Mobile and online services for Windows Mobile, we're talking a no-brainer here.

But there's more to it. Yahoo doesn't exactly use Microsoft code for anything and Microsoft doesn't use anybody else's code. The reasoning that's getting offered up is long on buzzwords like synergy and short on real, immediate benefits to either Microsoft or the end user. Google doesn't like it and while that's no surprise, they're not wrong to point out that MS has a history of stifling competition. Microsoft's response to Google claims that if they don't acquire Yahoo, then Google will end up stifling competition. Also, both companies claim that their dad can beat up your dad. Nyah.

Typically a merger/acquisition like this is a way to quickly ramp up some product or service that's been stalled internally -- that you don't want to take the time to learn and build yourself. You could make the case that Yahoo is a good fit in that regard. However, it seems like the work of integrating Yahoo's code and culture into Microsoft is much greater than the work of just filling out MSN to really compete with Google. The integration just won't work, as Mike Mace points out:

Q. What do you get when you combine Yahoo and Microsoft?
A. Microsoft.