Microsoft and Yahoo: No deal

By Justin Mann on February 11, 2008, 10:54 AM
In addition to some earlier information, here is more light on the Microsoft/Yahoo situation. At the beginning of this month, when Microsoft made an unsolicited bid to acquire Yahoo, it seemed plausible. In fact, it seemed probable. For the interim, however, that's not going to happen. Largely in part due to decisions made by Yahoo's board, the announcement came today that Yahoo will not sellout to Microsoft, at least not for the $44.6 Billion that was pitched.

The decision was made that being acquired by Redmond would not be in Yahoo's “best interests”, and believes that Microsoft offered way too little for the company. They assert that even if the company is having hard times, $44.6 Billion is simple too little of an offer and undervalues what Yahoo is worth. They probably have a good point – everything else aside, Yahoo holds a larger share of the search market than MS does. And that's exactly what Redmond is after.

That's not to say that discussions are over. Often initial bids are rejected, with the buyer then coming back with something larger. That's probably what we'll see here, with MS coming back with a larger offer in the near future.

User Comments: 3

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thejedislayer said:
Well, I'm personally glad to see that Yahoo didn't sell (For now.). However, it might of been interesting to see how Microsoft would of played it out with Google; if Microsoft had both Yahoo and MSN.
icye said:
I personally don't see a Yahoo/Microsoft alliance can competitively compete against Google. And think about the repercussions of such a merger, there is a lot of resentment toward Microsoft because of the way they go about trying to take over every facet of the net.
alphaa10 said:
Microsoft claims it got an unsolicited offer from Yahoo, but Yahoo says MS made the first move. Based on MS''s public record of prevarication and creative spin-marketing, the MS record testifies against its own claim. In fact, Yahoo does not want to sell-- especially at a fire-sale price.The ugly truth is Microsoft already has failed in the market sector Yahoo serves much better. This rankles Microsoft, which usually enters a market by buyout, not innovation. Were there any real MS innovation in play, MS never would have had to offer to buy out Yahoo, in the first place.Despite what MS public relations flaks will tell you, Windows users are not MS boosters, but frustrated by the insecurity, crankiness, petty limitations and foibles of MS products. They got their Windows licenses by purchasing a computer, not by a study of the viable market alternatives, including Linux and Apple. Domination of the market channel always has been the key to MS success-- not product excellence.And most MS users already know how MS obtained its market share-- by hook, crook and buyout-- and feel as frustrated as those of any captive proprietary market. Such people welcome a fluid and competititve situation with multiple players, such as open source promises.
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