Today, Microsoft put in an unexpected bid of $44.6B to acquire internet pioneer Yahoo!
This is indicative of Microsoft, the pioneer in PC software making a move to stay relevant. Microsoft is the quintessential software company. With its franchise business of Windows being challenged by technologies such as virtualization and Microsoft’s own insular view of how people want to work and connect Microsoft is attempting to modernize itself with this move.
The problem with the Microsoft bid for Yahoo! is that Microsoft’s DNA is bound in a bits in a box, ownership of the stack, shrink wrap mentality. This DNA is what made Microsoft successful and dominant. However, the game of the 21st century is around connection, communication, and collaboration in a mobile environment.
Will Yahoo! accept the tempting offer? Will Microsoft take over one of the internet pioneers, dramatically change their business mode…