Ever since the news came that Microsoft were offering to buy out Yahoo, I was waiting for the day when Yahoo would turn round and say (albeit quite politely) “fuck off”. Although that day has yet to come, it seems that the outcome of the proposal will be negative (for Microsoft obviously).
A lot of people said they were a match made in heaven, especially in the battle to take down Google, but they obviously failed to realise that a buyout of Yahoo worth $44.6bn is akin to going to a Ferrari car dealership and trying to get a top range model for a few thousand. Yahoo have a massive presence on the web, maybe not in terms of searching, but they have a whole range of services available, including mail, stock exchange, news, weather, and many many more. A deal worth $44.6bn is, in all fairness, an insult to a company like Yahoo, who are one of the oldest companies on the web.
So, assuming Yahoo reject the offer (which is the current likelihood), what will the next move be? Well, the offer has already increased the share price of Yahoo, possibly due to the large percentage of people who thought they would accept, and on the other side of the court, Microsoft’s shares have dropped by a staggering 12%, a drop that is thought to have been caused by the amount of Microsoft supporters who rejected the initial bid, saying that the company offered too much money.
Essentially, we have Yahoo on one side wanting more for their company, and Microsoft on the other, with most of their supporters saying they should have offered less. I can’t see a viable business solution any time soon, so it’s probably accurate to say that Yahoo won’t be going anywhere with Microsoft yet.
Popularity: 3% [?]
May 4th, 2008 at 8:12 PM
[…] months ago I wrote about how Yahoo would never be taken over by Microsoft. Now at the end of a lengthy process involving many offers, threats, and attempts at hostile […]