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	<title>Firebones &#187; MSFT</title>
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	<description>Code.  Money.  Literature.</description>
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		<title>Superstars: Microsoft, Yahoo! and the Joe Frazier Connection</title>
		<link>http://blog.firebones.com/2008/02/05/superstars-microsoft-yahoo-and-the-joe-frazier-connection/</link>
		<comments>http://blog.firebones.com/2008/02/05/superstars-microsoft-yahoo-and-the-joe-frazier-connection/#comments</comments>
		<pubDate>Tue, 05 Feb 2008 06:52:47 +0000</pubDate>
		<dc:creator>Chris</dc:creator>
				<category><![CDATA[stocks]]></category>
		<category><![CDATA[MSFT]]></category>
		<category><![CDATA[YHOO]]></category>

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		<description><![CDATA[Superstars
I intended to write tonight about the new catchphrase which I predict will sweep the nation with a stickiness that FTW can only dream of&#8212;Wheel suck!&#8212;but Roger Ehrenberg&#8217;s description of geeks vs. businessfolk derailed me.
Ehrenberg dissects Microsoft&#8217;s unsolicited takeover bid of Yahoo.  (Full disclosure: as a card-carrying Idiot Retail Investor, I made a trade [...]]]></description>
			<content:encoded><![CDATA[<h3>Superstars</h3>
<p>I intended to write tonight about the new catchphrase which I predict will sweep the nation with a stickiness that <a href='http://en.wiktionary.org/wiki/FTW'>FTW</a> can only dream of&mdash;<a href='http://youtube.com/watch?v=WX8Du9pusdA'>Wheel suck!</a>&mdash;but Roger Ehrenberg&#8217;s description of <a href='http://www.informationarbitrage.com/2008/02/its-a-matter-of.html'>geeks vs. businessfolk</a> derailed me.</p>
<p>Ehrenberg dissects Microsoft&#8217;s unsolicited takeover bid of Yahoo.  (Full disclosure: as a card-carrying Idiot Retail Investor, I made a trade recently that correctly called the takeover bid but I totally botched the execution on the profit-making side.  More on this good news/bad news joke later.)</p>
<p>Ehrenberg cites Michael Lewis to compare the geek culture of Yahoo! to the insular baseball clubhouse of skilled craftsmen whose finesse-based talent is not readily apparent to the casual observer, leading to a somewhat exclusive club wary of those not in the show.  In contrast, Microsoft is like the football locker room, where muscle mass and physical presence alone asserts dominance, yielding self-confidence and hubris not found in the cliquish Yahoo! ranks, demonstrated by an ability to work with customers and listen to needs and find the problems to solve.</p>
<p>And therein lies the &#8220;train wreck&#8221; Ehrenberg predicts&mdash;a culture clash that inevitably plays out like one of my favorite shows of the 70s&mdash;<a href='http://www.geocities.com/Colosseum/Dugout/8973/'>Superstars</a>.  In the wintry off-season, Superstars became the best reason for a kid to watch ABC TV on Sunday afternoon in the 70s.  Athletes from different sports competed in a decathalon of events.  Forbidden to participate in their own specialties, the athletes could choose from such events as rowing, swimming, bowling, weightlifting and several other sports.</p>
<p>The results weren&#8217;t pretty for the baseball players.  Maybe it hurt that invariably, the role model for the athletic baseball player ended up being some slow infielder like Ron &#8220;Penguin&#8221; Cey or a past-his-prime 40-year-old Lou Brock.   In 28 seasons, football players won the competition 15 times (I count four-time winner Renaldo Nehemiah as a football player even though he won three seasons as a 110 Hurdler before his NFL career began), and only in 1991 did Toronto Blue Jay .259-hitter Kelly Gruber finally represent for the baseball players.</p>
<p>Does this mean that the Yahoo! culture is doomed, much like Ron Cey coming in last in the 100 yard dash in 1978?  Or does it signal that Microsoft&#8217;s ability to put its business muscle to use will dominate, like <a href='http://www.geocities.com/Colosseum/Dugout/8973/comp/75final.html'>OJâ€™s triumphant performance in 1975</a>?</p>
<p>I tend to go along with Ehrenberg&#8217;s conclusion and predict the more dire outcome&#8211;it&#8217;s going to end up like Joe Frazier nearly drowning in the swimming competition.  Frazier, after admitting he didn&#8217;t know how to swim, was asked why he entered the event:</p>
<blockquote><p>
How was I to know I couldn&#8217;t unless I tried it?
</p></blockquote>
<p>Given the dearth of winning strategies on Ballmer&#8217;s watch during the past eight years of MSFT&#8217;s 40%+ stock price slide, that quote might well serve as the retrospective logic and epitaph for this most recent bid.</p>
<p>Wheel suck, indeed.</p>
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