"We believe we have made a very fair
offer to Yahoo. Now it is up to the Yahoo board to decide."
Microsoft's Kevin Turner made the above statement to reporters
at a news conference in Mumbai. The conference was intended to focus on
the launch of strategic initiatives with India's HCL Infosystems, but the topic
of discussion predictably shifted back to the ongoing
Microsoft and Yahoo drama.
"The bid is a tactic and a strategy towards becoming a
world class digital advertising company. With or without the acquisition we are
committed to becoming a world class digital advertising company,"
Microsoft CEO Steve Ballmer recently announced that if Yahoo
did not accept its offer within three weeks it would attempt to wrest control
of the company from the board with a proxy battle and might lower its
offered price of $42.4B USD. Yahoo's
refusal and demands for more money indicate clearly that it may be headed
for a showdown with Microsoft.
Further complicating matters is Yahoo's
new ad deal with Google and its possible merger with AOL. Of course
the merger would have to be approved by Yahoo's board, so if Microsoft deposes
the board, it might still have its way with the company.
Turner would not comment on reports from the The New York
Times that Microsoft was considering a new higher co-bid with New Corp.,
Rupert Murdoch's media giant, which owns Myspace.com.
Yahoo and AOL have both been criticized as floundering businesses
and analysts are skeptical a merger
of the two sinking
boats would produce anything but a larger sinking ship. On the other
hand, many observers also have been rather scathing when asking why Microsoft
has thus far, with all its resources, been unable to produce quality online
offerings, or a strong search platform.
Many analysts think that adding the
struggling Yahoo may help, with market share if nothing else, but some remain
skeptical of the long term benefits of a merger.