Many have been commenting on the proposed Microsoft/Yahoo merger, wondering what impact it will have (assuming it goes ahead) on the valley M&A scene. Most are saying the impact will be negative given the large investments that Yahoo seems to make in M&A activity.

Marc Andreessen however disagrees,  for various reasons;

  1. Yahoo, he says, hasn’t actually been that active an acquirer of startups
  2.  There are lots of other companies doing M&A work
  3. Core media businesses will increasingly see M&As as their saviour
  4. New M&A players enter the scene regularly
  5. How many startups have acquisition as their core focus (and if they do it’s risky)
  6. The couple of years the Microhoo merger will take to sort out will let startups scale a little further and potentially make greater returns

It’s a great analysis, read the full article if you have time.

Ben Kepes

Ben Kepes is a technology evangelist, an investor, a commentator and a business adviser. Ben covers the convergence of technology, mobile, ubiquity and agility, all enabled by the Cloud. His areas of interest extend to enterprise software, software integration, financial/accounting software, platforms and infrastructure as well as articulating technology simply for everyday users.

1 Comment
  • I agree with his analysis. I mean where do you reckon all the cash from the Microhoo deal will end up? Probably starting up other new ventures by cashed up CTOs and the like.

    “Build something of value — something that people want, and something that will be profitable at the appropriate point — and the world is yours.”

    Says it all really. M&A and new venture creation is not going to cease in the Valley anytime soon.

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