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Gates' search legacy
As Bill Gates prepares to exit Microsoft, questions remain about its troubled Internet search division
We are all aware of the latest news of Microsoft and Yahoo. It’s clear that one of the reasons that Microsoft has been vying for Yahoo is to boost their questionable internet search division. So, with Microsoft founder Bill Gates retiring in June of this year, is part of his legacy tarnished without having a search division to match the likes of Google or Yahoo? For more on that is Andy Serwer, he knows all about this, Managing Editor, Fortune Magazine. Has Bill Gates failed if he walks away without a strong search division at Microsoft?
Wow, err, failed? No way, Poppy, I mean, look, he’s not going out with all things being roses, no question, (I) mean, first of all, you know, you talked about search, but really the entire internet strategy of Microsoft, is not exactly running on all cylinders. I mean they've really never been able to crack that nut, but you know when you talk about operating software and application software, there is one company, and that is Microsoft. Look around all the desktops in your offices, most of them, all of them, probably running on Microsoft’s products. So you know, when someone steps down, there’s always issues, there’s always problems. I mean this is a bit of crossroads for the company, but still, I mean, obviously this guy built this company into an incredible Juggernaut.
What do you think the Gates wants to see happen, because the Microsoft-Yahoo story just continues, it’s, new developments, almost everyday. But the man that we are hearing from is Steve Ballmer, we are really not hearing much from Gates, in fact, he is reportedly telling everyone that is, it's, it's up to Ballmer.
Yeah, it's buddy Steve's gig now, I mean no question about that Ballmer is the CEO, and I think again, this speaks to Gates’ transition out of Microsoft and running the company, I mean. He’s really done a great job, I mean He’s taken a long time to set this thing up, it’s not like the founder, CEO of the company getting hit by a bus, uh-oh, there’s no succession strategy here. I mean this has been telegraphed to investors, to Wall Street, to people in the business, for, if not months, years, Poppy. So we've seen this for a long time. As far as this specific deal, you know, it’s a deal now. All things are on the table, anything can happen. We talked about Carl Icahn being in the mix. You know, you’ve got all kinds of bankers, and I mean, if the deal doesn’t happen with Yahoo, Microsoft will continue. If the deal does happen with Yahoo, Microsoft will continue on. I mean, so it’s not so critical to the future of this company in that. It won’t survive without it.
Ok, well, you know these big fish, you know these big players pretty well. What does happen? Do we see Microsoft offer that 47.5 billion-dollar bid again for Yahoo, did they come in a little lower? What do we see, and I know we have to wait until July, 3rd, till the shareholder meeting, but what do we see between now and then?
Well, you know, it’s really impossible to tell, I hate to cop out with the answer like that. But I mean really who knows, and everything changes day by day, it’s such a fluid situation. You know, you have Yahoo, you have Microsoft, you have Icahn, you've got bankers, you've got lawyers, you've got government oversight, you've got Google in the mix, you've got AOL in the mix, you've got Time-Warner playing around. So to try to predict what's gonna happen, you know, over the next couple of weeks, anyone who says they know the answers is lying to you, they really don't know. Because it's like the weather, I mean I have no idea what the weather’s gonna be like in early July, I mean I know some's gonna be going on, but I don't know exactly what's gonna be happen, I know it will be hotter, but I don't know exactly what's gonna be going on.
Ok, so we will wait and see, but, if we can see this tie-up and Microsoft can strengthen their internet division, that is just another, eh, accomplishment for Gates, but still he leaves a strong legacy behind.
Absolutely.
Andy, thank you so much.
Thanks Poppy.
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