Andy Jamieson: Entrepreneur

Some thoughts on the Y! MSN proposal:

1: Yahoo is being offered a massive premium on current share price; therefore it looks like a good deal, especially for new Y! investors

2: Yahoo and MSN face major competition from Google, who at least in the AU market place is the option for search advertising.

3: MSN is trying to ‘kill Google’, well CEO Steve Ballmer has said something along these lines, so why not buy the biggest gun you can…

4: MSN needs to do something differently and something aggressively, so this is a good attempt.

5: Google could actually be served by having its number 2 and 3 competitors distracted trying to enjoy the honeymoon period of uniting two massive entities with different cultures. Will people at Yahoo still be called “Yahoos”?

6: From an Australian perspective, this deal is relatively small compared to the BHPB / RIO dance-a-thon that is going on, now thats a hostile takeover!

Anyway, read the email from the founder, Jerry Yang. It must be a nice compliment. One that reminds of that joke about the privilege that it is to kiss the queen, yet still nothing that you really would like to do. Pucker up Yahoo!

Subject: Building on our strengths

yahoos –

first off, I want to thank you for the great job you’re doing staying focused on executing our priorities. there’s obviously been a lot of talk about yahoo! in recent days and we won’t let it distract us from pursuing our transformation strategy.

roy and I have communicated about the thorough review process our board is going through right now. the board is focused on maximizing the value of yahoo!’s tremendous assets for our shareholders. and it is going to take the time it needs to do it right.

as we’ve said, no decisions have been made about microsoft’s proposal. our board is thoughtfully evaluating a wide range of potential strategic alternatives in what is a complex and evolving landscape. and we’ve hired top advisors to assist through the process.

what’s become clear in the past few days is how much people care about this company. we’ve seen a strong show of support from our users, advertisers, and publishers, reminding us how much they love our products and services. and i’ve heard from many of you — and from other friends and colleagues from around silicon valley and across the globe — that we need to do what’s best for yahoo! and our shareholders. i promise you that the board is going to do that.

the microsoft interest highlights the tremendous strength of the yahoo! brand and assets: our half billion users around the world, our leading products and services, our open ad network, our technology, and most of all, our amazingly talented people.

we have a lot to be excited about and there’s more good news to come. yesterday we announced a digital music partnership with rhapsody and our acquisition of foxytunes, maker of the popular music toolbar plugin. today we launched zimbra 5.0, a next generation e-mail and collaboration suite that’s a great milestone in our open platform and starting point strategies. and stay tuned for exciting announcements next week at the mobile world congress.

as we look to build on the progress we’ve been making, i want to make sure you all realize how essential you are to yahoo!’s success. as this process moves forward, we’re going to keep you informed. your hard work and strong commitment are more important now than ever before.

jerry