Two years ago, as Microsoft was trying to buy Yahoo, we were really surprised to find Google making a proactive lobbying and marketing effort to scuttle the deal. As we noted at the time, it seemed pretty likely to come back to haunt Google. Indeed, Chris Thompson is now taking a look back and believes that Google’s decision to stir the pot over the Microsoft/Yahoo deal has probably been Google’s biggest blunder to date. Not only did it eventually lead to Microsoft working out a much, much better deal for itself, it directly resulted in Google getting significantly more antitrust scrutiny, both in the US and abroad. Now, some of that scrutiny likely would have come anyway eventually, but Google definitely helped call much more attention to the situation and its own market position. The whole thing made no sense. Google should have known to keep its mouth shut and watched as Microsoft and Yahoo screwed up the deal on their own.
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