Microsoft-Yahoo! update

Mike Arrington at TechCruch believes a special Yahoo! board meeting will basically accept the Microsoft offer as no white knights (at least not with a full offer) are emerging.   

Last week, I came out saying the acquisition would be good for stoking innovation at Microsoft. But clearly Yahoo! management is not jumping for joy, and I wish they or consumers had more say in the matter. In tech world, particularly with software centric deals, investors are encouraging, no pushing companies into M&A. In our system, their interests trump every one else's but not sure it is good for the industry.

As I wrote recently, I am still looking for proof that the 200 or so major acquisitions in the software industry over the last 15 years has been good for consumers.  I would like to see more commitment from acquirers how they would flow merger synergies to consumers. And I would love to see investors quit threatening target companies with lawsuits and more if they resist an offer.

M&A is not the only way to create shareholder value. And it certainly has not shown it creates customer value.