Emerging Tech

Microsoft walks away from its $44.6 billion bid for Yahoo

Microsoft has reportedly decided to walk away from its highly-publicized $44.6 billion acquisition bid for Yahoo. Negotiation talks broke down and Microsoft decided that the effort of a hostile takeover would not be worth the potential value of integrating Yahoo's online assets with its own.

Microsoft has decided to walk away from its $44.6 billion acquisition bid for Yahoo. Negotiations broke down and the Redmond, Washington software giant decided that a hostile takeover -- and a subsequent nightmare integration of the two companies -- would not be worth the potential value of integrating Yahoo's online assets with its own in order to mount a battle against Google for Internet supremacy.

Over the past month, it became clear that Yahoo's leadership did not want to join with Microsoft, as they explored deals with Google, AOL, News Corp, and any one else who would listen, in an effort to repel Microsoft. Because of that, I think it's ultimately a good thing that this two-month courtship is finally over. It's better for both companies. This would have been a bad relationship. Both of them are better off trying to clean up their respective online businesses. Microsoft can focus on online apps and Yahoo can focus on online content.

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About

Jason Hiner is the Global Editor in Chief of TechRepublic and Global Long Form Editor of ZDNet. He is an award-winning journalist who writes about the people, products, and ideas that are revolutionizing the ways we live and work in the 21st century.

15 comments
jasonhiner
jasonhiner

Original post: http://blogs.techrepublic.com.com/hiner/?p=684 I think it's best Microsoft to focus on the online applications business and it's best for Yahoo for focus on search and online content.

ToR24
ToR24

I remember when Yahoo was lean and mean, simple and clean. Yahoo's massive opening page is the single most critical drawback to widespread appeal. On mobile devices, slow networks and cellular modems, it's a non-starter. Delivering obtrusive, fat mega-movement flash and floater ads effectively prevent users from getting anywhere and staying on-site. On older systems, they just crash and burn. Google, AltaVista and to a lesser degree Ask and Live Search provide fast and simple opening pages that set the ad hooks effectively. Yahoo and Ask's context drop is an unnecessary hog. And when you pay by the kB, you're not likely to empty your wallet or the company expense account there. Microsoft has done well to walk away. Yahoo has to do some serious retinkering to regain any of its lost luster and appeal. Now where's the money going to come from?

ChewyBass
ChewyBass

After a lot of deliberations Microsoft is backing off in order for the stocks to plumment, and then move in for a hostile takeover. Just my 2 cents.

akfaka
akfaka

The world is already permeated with Microsoft's cockroaches, please keep Garbagesoft from infesting the net with their trash!!

aflah.memon
aflah.memon

I think Microsoft has lost the battle to capture a chunk of future online advertising revenue. In my view, Microsoft would have benefited and penetrated a segment of market which it has not been in and in which the "future heavy gains" lie. Although, this take-over would have added to Microsoft's revenue and might have even turned around the financial down turn Microsoft has taken but it would have put the user (You and Me) on a shaky ground.

seanferd
seanferd

as a Yahoo! customer. It is probably best for both companies as well. I also hope Yahoo! doesn't execute some sort of merger with AOL, either. We've seen what happened to CompuServ, Netscape, and others who have been down that road.

w2ktechman
w2ktechman

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The Scummy One
The Scummy One

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seanferd
seanferd

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w2ktechman
w2ktechman

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DanLM
DanLM

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boxfiddler
boxfiddler

you get going and the cat leaves my lap because she's scared of the giggling. "I am getting the life beaten out of me as I click" -- too much! :D edit: got a double 'paste' in there somehow.

b4real
b4real

Yes, I think it was a dooming if this would have happened. Microsoft may not be able to go against Google in some of the spaces that Yahoo! is strong. MS may need to realize that they can't rule the world. I almost feel like they are losing ground - Vista debacle, can't get Yahoo!, can't offer a superior virtualization platform. Who knows, party may be over.

DanLM
DanLM

Steve Ballmer. Ever sence he has taken over the helm, MS has just been running into walls. Put someone back in charge who has the vision that Bill Gates had. No, I'm not a MS fanboy. Just think Steve Ballmer is an idiot. Dan

NotSoChiGuy
NotSoChiGuy

...when Ballmer was introduced as the new top dog at MSFT was: "So, that is what happened to the guy that played the dad on Just the 10 of Us". Pretty much says all there needs to be said! ;)