So Microsoft is trying to buy Yahoo. I’ll leave the detailed analysis to people better qualified than myself but I thought that I could add a little perspective simply by looking back and remembering something that happened less than ten years ago.
As you can no doubt guess from the title, the event that springs to my mind is the merger of HP and Compaq. The main problem with HPaq at the time was that merging HP’s loss-making PC business with Compaq’s loss-making PC business just wasn’t a good idea. Fiorina pushed the whole MBA line of thinking: being the biggest player will allow greater economies of scale, lower prices and more profit. Unfortunately, two big losses merged tends to make a big loss also, albeit perhaps smaller than the old combined total1.