Google/YouTube...Microsoft/Yahoo...Viva La Difference

Web native buys Web Native…Software Behemoth buys Internet Conglomerate…and you wonder why Google has Microsoft running in circles (I mean Ballmer)

Time will tell a different story but the immediate reactions in the acquirers stock tell a very simple story…Google shareholders loved the YouTube news and Microsoft Shareholders hate the Yahoo news.

Sure there are arbs working both sides of MicroHoo and this market is meaner now than when Google bought YouTube, but don’t think that the VC’s who funded YouTube at pennies were not shorting Google the minute after the deal was announced either. Every expert – mean ‘PUTZpert – hated that deal and the stock is much higher (was waaaaay higher) than the day beofre the deal was announced.

Wall Street can be fooled for sure, but they got both of these deals RIGHT with price action. If you are making an investment in Yahoo or Microsoft before the dust settles on the final deal, you are just gambling. Don’t kid yourself.

Also – the more exciting and important deal play is Oracle/Salesforce.com which I Twittered on this weekend.