The Microsoft bid for Yahoo – The real reason is AT&T?

I woke up today with the news that Microsoft is making a hostile, unsolicited bid for Yahoo. The pundits at the financial news stations keep talking about Microsoft’s need to compete against Google on the search engine area. All they were concerned was whether it makes good competition against Google.

Again, something splashed in my mind and I realized there may be something else behind Microsoft’s bid. A few messages earlier, I commented how I have been trying to lower my monthly fees for the Comcast cable TV service. At that time, I was trying to find an alternative product to the cable service. During my research, I stumble upon the Microsoft TV website (see here). It is basically software to provide TV content via broadband. Kind of like Apple TV. Microsoft is also including that kind of software in its Xbox game machines.

Reading through various discussions, I know that AT&T has been embarking on expanding its broadband infrastructure by laying new cable optics lines (basically, what the cable companies did in the late 90’s). In 2004, AT&T already selected Microsoft TV to be the software platform. As we also know, AT&T also has Yahoo as the portal for its broadband subscribers. Soooo….Maybe Microsoft is really going beyond what the pundits are saying. That is, beyond trying to compete in the search engine area, it may be viewing the purchase of Yahoo as also a stepping stone into a revenue stream obtained through any future partnership with AT&T.  Remember that AT&T is also a giant wireless phone company. Just my two cents.

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One thought on “The Microsoft bid for Yahoo – The real reason is AT&T?

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