Print 10 comment(s) - last by Haltech.. on Apr 1 at 6:25 PM

You didn't think Microsoft got rich writing bigger checks, did you?

The Yahoo and Microsoft merger process has become a waiting game, like a vulture circling a haggard beast.  After the initial frenzy surrounding Microsoft's bid, the resignation of Yahoo Chairman Terry Semel, the eventual rejection of the offer by the board, and finally Microsoft's hostile takeover offer to shareholders, matters have quieted considerably.  Microsoft, though constantly reaffirming its continued belief in the merger, is content to sit and wait.

Yahoo was unable to complete an advertising deal with Google that might have saved the company.  Meanwhile, it’s carried out a string of largely insignificant moves such as its launch of a new homepage service and its acquisition of video-advertiser Maven.

Inside sources say that Microsoft plans on standing firm and will not raise its initial offer, originally valued at $44.6B USD – half cash, half stock -- even if it has to wait.  One of the knowledgeable parties commented anonymously, "Why would Microsoft bid against themselves? The company sees no reason to bid against itself."

The sources requested anonymity as they were not authorized to speak on the company's behalf.  Early last month Microsoft met with Yahoo officials and discussed the format of a potential merger.  The meeting was seen as a substantial breakthrough in the standoff.  Since that meeting, there has been little progress.

Yahoo held talks with News Corp. owner Rupert Murdoch and Time Warner Inc's AOL division, according to inside sources.  However, these talks went virtually nowhere and Murdoch nixed any deal that would place him as a competitor to Microsoft.

Many tech blogs speculated wildly in recent weeks that Microsoft would up its bid.  One reason they won't is because of the relative failure of a recent road show by Yahoo's top executives, which was intended to improve confidence among U.S. institutional investors.

Microsoft's offer currently stands at approximately $42B USD, due to declines in Microsoft stock value.

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RE: All doom and gloom
By wordsworm on 4/1/2008 1:15:29 PM , Rating: 3
I don't really see many positives coming out of this transaction, other than Microsoft having a broader footing to combat Google (which is becoming too powerful too fast).

I am under the impression that Google will be brought down to earth. I think that the new kid on the block feel is now rubbing off, and should ads start to falter as their revenue generator, I think its going to show its color as a relatively mediocre company. I can't think of a single thing that Google does better than Yahoo. I can think of many things that Yahoo does that no one entity does quite so well. It's so well diversified. The only things that come to mind that are nice from Google are their mediocre email service, Google earth (love it!), and competitive search engine.

What Yahoo really needs to survive a Borg takeover is Jeri Ryan in PVC or whatever they had her in back in Voyager's days.

RE: All doom and gloom
By Haltech on 4/1/2008 6:25:39 PM , Rating: 2
Google brought down to Earth? come one, havnt you seen their new project Virgle. Got to colonize Mars ASAP. :)

"I'm an Internet expert too. It's all right to wire the industrial zone only, but there are many problems if other regions of the North are wired." -- North Korean Supreme Commander Kim Jong-il

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