MediaFile

Microsoft and Yahoo: what next?

May 5, 2008

Yahoo CEO Jerry YangNow that Microsoft has broken off its pursuit of Yahoo, the only thing we know for sure is that those two technology icons will not be merging (right now). Every other possibility and option for the two companies is up in the air. (One thing is for sure, Yahoo’s stock is already down more than 20 percent .)

There are no shortage of opinions:

** Microsoft’s Steve Ballmer is “under the gun” to spend the $46 billion earmarked for Yahoo. (New York Post)

** Yahoo’s Jerry Yang and his crew were “elated” when Microsoft withdrew its offer — but their joy may be short-lived. (Los Angeles Times) (NOTE – Yang in his own blog vaguely addresses reports of celebration breaking out in Yahoo’s camp:  “No one is celebrating about the outcome of these past three months… and no one should.”)

** There is no clear idea of a quick fix for Microsoft, as “the center of gravity in computing continues to move away from the personal computer, Microsoft’s stronghold, and to the Internet.” (New York Times)

** Yahoo shouldn’t abandon its proposed search deal with Google. (Silicon Alley Insider)

Even Jerry Yang has some thoughts :

Has this experience changed us? Of course, it has. We’ve emerged a stronger, more focused company with an even greater sense of purpose.

 Shareholders don’t seem to hold the same opinion today. What do you think Microsoft and Yahoo will do next?

(Reuters)

Keep an eye on:

  • Warner Bros to Take Over Daytime Programming for The CW (Broadcasting & Cable)
  • Cablevision’s $650 million bid for Newsday includes the newspaper’s real estate, and therefore the difference between its offer and offers from Mort Zuckerman and Rupert Murdoch smaller than it first appears. (New York Times)

(Photo: Reuters)

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