DealZone

Yahoo: cold, soft, easy to digest

May 5, 2008

croc12.jpgNow that Microsoft’s attempt to buy Yahoo seems to have failed, there’s a lot of speculation about Microsoft’s strategy.

Deal Journal speculates that Microsoft may be following a “no”-really-means-”maybe” strategy. “In the past, Oracle and PepsiCo backed away from takeover attempts, only to return to the negotiating table after their prey twisted in the wind,” Heidi Moore writes.

But here’s an even more evocative prey metaphor, from venture capitalist Todd Dagres of Spark Capital: “Microsoft is using the crocodile strategy- – rather than try to eat its prey while it’s warm and tough, it’s dragging it down to the bottom of the river, sticking it under a rock and eating it later when it’s cold and soft.”

Either way, is Yahoo eventually dead meat?

Photo: Reuters

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