A timely reality check
In trying to buy Yahoo, Microsoft had a clear goal: To be No. 2 to Google in search and advertising. If things keep going the way they are heading, it may well achieve that goal without spending the $50 billion Yahoo would have cost.
Today’s news is that three more of Yahoo’s best executives are leaving the company: Qi Lu, Brad Garlinghouse and Vish Makhijani. That follows the departure of two executive vice presidents, Jeff Weiner and Usama Fayyad.
There is no guarantee all this will accrue to Microsoft’s benefit. Users and advertisers are as likely to move to Google as to Windows Live, MSN and Microsoft’s aQuantive advertising unit.
But whatever Microsoft’s prospects were at the beginning of this year, they are better now, precisely because Yahoo’s are much, much worse.