Microsoft-Yahoo! (here after referred as Microhoo!) is one of the biggest and strategic deal mankind has ever seen. (Isn't it? What do you think about it? Check out my poll). The entire world is talking about it. While some supports Microhoo! and its fight against the Goliath (read Google), some are reversing the roles - Google as Goliath and Microhoo as David. Anyway, lets look at it differently.
Ever heard of Blue Ocean Strategy? Well. It's not flaunted in the media and not even by business think houses. It's a simple idea.
The Red ocean and the Blue Ocean represents the markets. The Red one is where competition is very fierce and growth is strictly restricted. Even, the ocean became red due to the wars between the competitors. (Off the track, I want to add that the "sharks" were attracted and they made it bigger than the existing ones, who were bleeding).
The Blue Ocean represents the market which is untapped. There are no business rules in place and anyone can make it big. Surely there is no war and bloodshed. (And of course, there are no sharks, but only sharks in dolphins coat!! VCs!!).
So, Microsoft is currently in deep red ocean (or shit!). They are attacked by sharks (read antitrust guys!). They sense that Yahoo! is a cruise to the Blue Ocean. So, they just buy the entire cruise.
Well, what are the Blue's that Yahoo! offers? First, a direct stake and control in Alibaba.com, China's foremost search portal. And China is considered as a perfect Blue Ocean by China Mobile CEO Wang Jianzhou. Other than China, is you want to know what else are "Blue" for Microsoft in this deal, read the article, The New Internet : Where Microsoft can Win from Seeking Alpha. Read it and let me know what you think about it. Are there some "shark-in-dolphins clothing" waiting??
To conclude, I would like to put one more dimension, or say, one more color into the picture. Why not create a new ocean called Yellow Ocean where it's ruled by one and competition is impossible. Like Google for search and Microsoft for desktop software. Let's wait and watch what happens...
Check out about Blue Ocean Strategy in Wikipedia. And here a blog on Blue Ocean Strategy - Value Innovation