Can two Internet failures - Microsoft and Yahoo - become successful when they come together?

We doubt it.

After failing badly in its efforts to take on the Google juggernaut, Microsoft has made a desperate $44.6 billion offer to buy struggling Internet pioneer Yahoo.

We think Microsoft’s proposal is heck of a bad idea. What does Yahoo really bring to Microsoft? Not much, when you stop to think of it.

Following far too many missteps, Yahoo is floundering and its CEO and co-founder Jerry Yang has shown no signs so far that he can do a Steve Jobs on the company.

Google has overtaken Yahoo and Microsoft in both search and in monetizing the page views from search through key word advertising on Google and its affiliates (via the AdSense program).

In our view, the main issue is that the quality of search results on both Yahoo and Microsoft is inferior to what Google offers. That has led most people to stick with Google.

Microsoft argues that the proposed acquisition of Yahoo will give consumers, advertisers and publishers a credible alternative to Google. We remain skeptical of that claim. Perhaps, Microsoft should invest its resources on the next frontier - the mobile arena.

Despite investing billions of dollars, Microsoft’s MSN/Live search engine struggles Continue Reading…