So, What Does Yahoo Do Now?
I did not expect Microsoft to withdraw the offer, but that’s what they did. I’m relieved that the first season of this soap opera is at an end, as I was getting bored out of my mind with all the speculations regarding the issue. But, I’m afraid that the story simply cannot end now.
Microsoft gave up, but they have another business (actually, a multitude of them) to run. They will probably try to buy themselves a different big entrance into the online ad business, although their options aren’t that great.
It will be interesting, however, to see what Yahoo does next. Having been drawn into this mess against their will, they were forced to do a lot of decisions they normally wouldn’t have done. They also explored almost all viable merger/acquisition/partnership options they have. Will they just go back to business as usual, or will they act on any of it? For example, what happens with the Google ad deal, which was - according to both companies - going so well in its testing phase? Will they just pretend it never happened?
Oh no, this cannot end now. Microsoft has ruffled too many feathers with this one, and now both companies need to do something about it, unless they want to sit at the same table in two years, negotiating the same deal under even worse circumstances for both of them. Interesting times are ahead.
May 5th, 2008 at 10:59 am
MS will watch. If Yahoo doesn’t get their value back up and esp. if it falls even lower, MS will eventually put another (significantly lower) offer that Yahoo will be in an even more difficult position to refuse.
At that point, the purchase will seem like a great deal for MS…all the tech and market presence they wanted to begin with for an even lower price. Yahoo, with a deflated or falling value, won’t be able to make even a show of putting them off.
March 30th, 2009 at 4:14 am
If Yahoo doesn’t get their value back up and esp. if it falls even lower, MS will eventually put another offer that Yahoo will be in an even more difficult position to refuse. At that point, the purchase will seem like a great deal for MS…all the tech and market presence they wanted to begin with for an even lower price.
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