Microsoft is 2000 times less effective than Google; Yahoo Board seems to be insane
February 12th, 2008 by Giles SmithThe interesting question is why a company that claims to know how to program would pay anything for Yahoo, much less a P/E ratio of more than 60.
Google unseated Yahoo at a cost of about $20 million in financing, simply by being effective software developers and tasteful interface designers. We can infer from this offer that Microsoft expects its own programmers to be only 1/2000th as effective, dollar for dollar, as Google’s. In comparing Vista to XP and dividing by the amount of coding effort that went into Vista, it would be tough to argue with this conclusion.
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