In response to the alledged Microsoft and Yahoo! talks Seth Godin asks the following question:
“The challenge of an acquisition is going to be: Can the combined company make it a lot more likely that mavericks actually bring great stuff to market?”
“These days, everybody wants to merge. Too often they’re just blindly gobbling up as many players as they can, in the false belief that bigger has to be better. It kind of makes you wonder if merger-mania isn’t really ego-mania. Or something even more destructive. If you look at it objectively, most mergers do not revitalize companies. Rather, they provide short-term gains for a relatively small group of people, usually Wall Street bankers and lawyers.”
So to answer Seth’s question: I am rather sceptic about the effects of this possible deal.