Why so hostile? Next steps in Microsoft-Yahoo saga

April 28, 2008

ballmer-in-thought.jpgMicrosoft’s weekend deadline to Yahoo to negotiate a friendly deal has come and gone. So, now what? Microsoft has its options. It could raise its bid, walk away, go hostile at a lower price or go hostile at the current price. Most Wall Street analysts think the last option is the most likely.

Separately, Marc Andreessen , co-founder of Netscape, provides a thorough breakdown of the options for Microsoft and Yahoo. Especially interesting is the part about a potential legal fight if Yahoo’s board decides to exercise its poison pill as a defense to a tender offer by Microsoft.

(Photo: Reuters/Christian Charisius)


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As a deafening silence emanates from Sunnyvale and Redmond, the media speculation began to build on how Microsoft Corp would respond to the reluctance of Yahoo Inc to become part of the software-maker’s empire. At this point, the media’s consensus is that there exists no direct contact between the two sides. “There was no direct contact between the two sides this past weekend and people close to both camps said they were preparing for the next stage of battle. Microsoft was unlikely to make a move on Monday, however, people familiar with the matter said,” The Wall Street Journal reported in an article on Monday. Yet the Journal’s report fails to consider that the companies could be continuing negotiations through a back channel between Directors from the two companies’ boards. This back channel would help the two companies to evade the media spotlight.

Posted by NewsVisual | Report as abusive

It is high time Bill Gates stops acting like a bully and extortionist. This is what he/Microsoft is now percieved in India,generally. This impression gained strength from past record of chain of anti-trust suits and settlement there of with large compensations and penalties.

Worse, MS is now seen as degenerating one that ,despite best tech-people, is failing to come up with a search engine that can beat Google.

This is no secret that thoroughly incomptent organisation like MSN will take Yahoo too down the hill alongwith it.

Posted by Bhagwat Goel | Report as abusive

I think Yahoo should give into Microsoft. Both the companies together would do much better than Yahoo can individually do. Jerry Yang should give up his stubborness

Posted by vamsi | Report as abusive


Please speak for yourself. “now perceived in India” is a rather irresponsible and unsubstantiated remark, unless you back it with data. “MS is seen as degenerating one” is another such remark – with $66bn revenue for 09 – its anything but what you just say there. Search is not the end of the world, nor is MS a one trick pony like some of its competitors you mention in the post. Its a diversified company, super keen on getting all its arms strong.

$31 is heck of a deal for a stock which was trading at 19$ – and which failed to come up with any other suitor who would offer anything close. It makes one wonder if Bill added in a bit of his generosity even in this deal – like he’s been doing the world over.

Posted by Sunil | Report as abusive

A little bird hints to me that negotiations are going on behind the scenes and we’ll be very surprised within the next day or two!

Posted by SpiderBiteMan | Report as abusive

A little bird, huh?

Posted by Whattheheck | Report as abusive