Uncle John's Cabin

Google and Microsoft Joint Venture code named "GooSoft"

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My inside sources at Microsoft have confirmed a new radical change in strategy at Microsoft and Google. The details I have are still vague and sketchy at this point (still only slightly better than "rumor stage") but expect an announcement by the end of the day or at the latest, by the end of the week. In a new joint venture called "GooSoft", the two formal archrivals will work cooperatively for the first time in history.

Google will now use a new "Open Source" version of the Windows Mobile SDK instead of their recently announced cell phone platform to create a new open platform for cell phone users to try to keep Apple's new iPhone at bay. This new open source OS will be available for download at freesourcecode.microsoft.com. In return, Microsoft will farm out it's search operations to Google in what they finally declared as a losing battle. This should help both companies focus on what each do best and allow them to tackle new challenges posed by Palm, Apple and Research in Motion all running on proprietary operating systems at this time.

According to my friends inside Microsoft, Steve Ballmer has just been waiting for Microsoft's CEO and primary shareholder Bill Gates to step down and has teamed up with Paul Allen, Microsoft's co-founder to wrest the control of the company from Gates who has been responsible for Microsoft's dismal performance of late by keeping the Windows source code proprietary. With Allen's support, Ballmer now has the votes necessary to reverse many of Gate's decisions and will start by opening of the Windows source code to any and all parties that are interested in helping improve the operating system.

In a company email sent to all employee's, Steve Ballmer replied to the question of why Microsoft was giving up its search engine business by farming it out to Google, Steve Ballmer supposedly wrote "We can't compete. We might as well team up with Google to ensure both companies survive the oncoming threat posed by the new social and videos networks by MySpace, FaceBook, YouTube as well as foreign competitors such as Biadu.com."

Also at stake is Microsoft's most profitable product, the Office desktop suite. Google, will reciprocate by dropping it internet based Google Office Suite and instead promote Microsoft's new internet Office Suite. This is a win win for both companies.

This is thought to be great news to Microsoft and Google shareholders who have both lost share value over the Yahoo debacle. One other possibility is that Microsoft, now teamed up with Google will abandon it's quest to buy Yahoo. There is no longer a need to waste the company's capital and stock on a Yahoo purchase and both companies will plan the demise and funeral for Yahoo. I figure with the $6 loss in stock value MS took when the Yahoo deal was announced, the new price target should climb to about $42. The price was for MSFT $36 when the takeover bid for Yahoo was announced. Google has also suffered severe declines in stock prices as Google has toppled from its 52 week high of $720 to its current trading range of $420 to $440. This reduction in threat from Microsoft while leaving Yahoo out in the cold should allow Google's stock to head back northwards to near $1000 per share within 6 months once the deal is announced.

Disclaimer: Please wait for the announcement of this deal as I cannot confirm the deal other then by checking with some friends at Microsft. I am sure there will be plenty of time to get in as today's lower prices so there is no rush. I have no contacts at Google to confirm or deny this deal yet from their side. I am not a professional financial adviser and do not represent any claims as such.

Happy trading and happy April 1st!
Uncle John

P.S. This article was completely fictitious (when I wrote it.)
P.P.S. Happy April Fool's Day!!!