Great drama in what will be known as the Silicon Valley brawl between Microsoft and Yahoo or TechWar 2008. After some fancy footwork, Yahoo officially rejects Microsoft’s generous offer. I have been liking the Businessweek blog coverage at TechBeat (thanks Rob Hof).
Yahoo just invoked the “Silicon Valley Poison Pill”.
What we have here folks is a cultural mismatch. By and between the Silicon Valley ‘one-cyle’ venture high flyer of Yahoo and the multi-cycle success of Microsoft.
We are seeing what I call the “Silicon Valley Poision Pill” in action. Forget Yahoo’s mismanagement for a minute. There is a general feeling that this fight is about the core ‘DNA’ of Silicon Valley. This fight represents that cultural vibe and people in Silicon Valley (me included) that think Yahoo can put up and succeed against Google. Bloggers think it’s a done deal.
In Silicon Valley you are judged by the ‘business cycles’ notches on your belt. Very few survive and/or even sustain success in multiple business cycles. In technology the Hewlett-Packard Company (opps I mean HP) has sustained the ‘longest business cycle run’ – 1939-Present.
Microsoft buying Yahoo eliminates Yahoo from being listed next to the ‘multicycle’ winners of Silicon Valley. Failure is accepted and excepted in Silicon Valley in fact regarded as a badge of honor. However that is mainly for startups not global success like Yahoo. This Yahoo failure and Microsoft buyout is a knife in the heart of Silicon Valley. Yahoo will be forever known in the history books as a ‘one cycle’ poney.
Sure Yahoo is worth more in breakup value and I’m sure Gordon Geko would love to sell off the pieces. What matters most to Yahoo and Silicon Valley: “Pride”.