Google and Its Econ 500 Method
October 14, 2009
“How Google Is Trying to Hold Up the Microsoft-Yahoo Deal”, if on the mark, provides insight into how Google handles strategic challenges. Michael Learmonth provides a fascinating glimpse of the behind-the-scenes activity related to the tie up between Microsoft and Yahoo, two companies caught, bypassed, and left in the dust by 11-year old Googzilla.
He wrote:
The Mountain View, Calif.-based giant hasn’t taken an official position on the proposed deal, but it is quietly disseminating a view to regulators, politicians, analysts and journalists: that the need for scale is not a valid case for approving Microsoft’s search deal with Yahoo.
The use of information to gum up the works strikes me as interesting. Google’s method has created a battle among economists, almost certainly a situation that will leave regulators, journalists, and bystanders wondering what the heck is being said. Economists—along with lawyers and MBAs—are the grandparents of tortured prose, part of the present financial crisis, and bottlenecks in regulators’ offices. Ah, the joys of an economic theory argument. Who has the popcorn?
Stephen Arnold, October 14, 2009
No one bought me a donut to offer this opinion.
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