Does Microsoft Need Yahoo Before Its Windows Shatter?

I almost titled this post "The Young & the Profitless Episode 2: Brad’s Trust Fund Drying Up" but realized you would have needed some background on what the heck I was talking about.

Instead, I went with a title that better reflects some news that Microsoft would rather not have discussed right now. You see, while Microsoft is trying to convince Yahoo’s investors that the company is on the ropes and only MSFT can save it, the Redmond software company is having a few issues of its own.

Calling the situation "untenable" and describing Windows as "collapsing," a pair of Gartner analysts yesterday said Microsoft Corp. must make radical changes to its operating system or risk becoming a has-been…Microsoft has not responded to the market, is overburdened by nearly two decades of legacy code and decisions, and faces serious competition on a whole host of fronts that will make Windows moot unless the software developer acts.

And what happens if Windows becomes moot? Microsoft loses the foundation of its success–your desktop. If we agree that Google is building its empire around your web browser, it’s fair to say that Microsoft has built its empire around your operating system. If Microsoft Windows takes a huge hit, the company loses that solid foundation. But, if Microsoft can acquire Yahoo, it will find itself with a back-up platform–your web browser.

Brad may well be close to convincing Stacey that he’s the only guy who wants her, but the last thing he needed was Garth (Gartner) telling the world that his trust fund might not be around for much longer. (OK, that last line won’t make any sense, unless you read this previous post).

(via)