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In Battle for Dominance, Will Innovation Be Casualty?

If the Microsoft-Yahoo deal is ultimately a done one, the question to ask is, what will be accomplished? "How Microsoft blends the two companies would have broad ramifications for millions of Web users, as well as employees. Such integration efforts are rife with pitfalls, including potential defections of technology talent and distractions for senior management," The Wall Street Journal writes, while reporting that Microsoft has studied the process Hewlett-Packard used to integrate Compaq after that 2002 acquisition. The San Jose Mercury News notes that the bid for Yahoo is the latest development in a long, Darwinian chain of slower moving tech companies being eaten up by faster ones, citing the Silicon Valley axiom, "Innovate or face unwanted suitors." But Dennis Berman at Deal Journal isn't sure Microsoft is a convincing predator. "In a world where users -- not companies -- are continually innovating and upending the business world, creating an ever-larger bureaucracy does not seem like a guarantee of anything," Mr. Berman writes.

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