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Microsoft and Yahoo, the drama just keeps coming

Microsoft keeps trying to dance with Yahoo, but Jerry Yang seems determined to go to the prom stag. In their latest refusal, Yahoo decided against selling their search business to Microsoft, months after refusing Microsoft's overtures to purchase the whole company.

Microsoft keeps trying to dance with Yahoo, but Jerry Yang seems determined to go to the prom stag. In their latest refusal, Yahoo decided against selling their search business to Microsoft, months after refusing Microsoft's overtures to purchase the whole company. Of course, there is still plenty of speculation that Microsoft will "sweeten its previous offer" in order to instantly become the number two player in the advertising and search market.

Yahoo and Microsoft: Is It on Again? (News.com)

Yahoo may be forced to do something major in the near future as their stock price has tumbled back to near the level  it was before Microsoft announced their intention to acquire Yahoo months ago. In addition, Yahoo executives, including the leaders of their e-mail, messaging, and search divisions, have left the company, bringing the number of executives to leave the company in recent months to about 50. All of this has overshadowed a deal between Yahoo and Google that will add between $250 and $450 million to Yahoo's bottom line.

Has Microsoft Sent Yahoo into a Death Spiral? (New York Times)

Yahoo's Turmoil Spreads as Its Top Executives Flee (USA Today)

Yahoo!, Google Reach Agreement (Financial Express)

It certainly seems like Yahoo needs to do something to save themselves from being marginalized into nonexistence. It seems likely that the shareholders might have reason to elect at least the minority board that Carl Icahn has hinted he may put up at the meeting in July. It certainly seems to me that Yahoo might be better off accepting Microsoft's overtures as I have not seen a lot of direction from Yahoo in quite some time. What moves, if any, do you think Yahoo will make before their annual shareholder's meeting on August 1?

7 comments
itservices
itservices

Always the shareholder, never the end user. All I have heard in this pantomime is the poor shareholder and how they have lost money. Consider the end user who will have limited choice, a M$ clunky design going forward and the lack of consumer value. Also consider this lack of competition will probably result in the EU blocking the deal and unless Yahoo! and M$ up and leave Europe that means convincing the trade and competition commissioners there that this deal will still result in diverse consumer choice. I doubt it somehow.

Andy J. Moon
Andy J. Moon

And if so, what moves do you thing would be best for the floundering former giant?

hnmcc
hnmcc

So much confusion in one short post: 1) All private sector businesses are run in the interests of their shareholders - or they should be! Businesses without real shareholders (e.g. mutuals, public sector, etc.) are normally run in the interests of the people who work in (or, especially, near the top of) them. I know sometimes this isn't pretty, but it's the inescapable way of the world. Live with it. 2) How can you discuss competition in search without mentioning the monopolists-in-chief at Google??? As things stand, consumers have severely limited choice because Yahoo, number 2 in the market, is so badly run. Add to this the disgraceful way that Firefox 3 has such strong built-in links to Google (reminiscent of MS at its worst), and surely even you can see that the chief threat to consumer choice in this area comes from the "do no evil" mob? I'm no MS fan - the only MS app I run is Windows Defender. But it seems to me that an MS take-over of (at least) Yahoo's search business would be a very welcome step towards a more competitive search market.

Neon Samurai
Neon Samurai

Microsoft is bound by corporate law that requires the consideration of shareholder dividends before end user benefits. In addition, if they are not persuing every possible avenue for profit, the shareholds can file legal claim. It sucks but that's how it is currently. (A legal expert could confirm or correct me on that one) In europe and in the search engine business, I suspect Google holds the monopoly possition. That only makes there possition a problem if they use it for unfair advantage. If they are not in the possition, they are surely the largest of the search engine providers these days. MS could probably buy Yahoo, Dogpile and Webcrawler while still having enough competition in search engines to remain clear of EU investigation. I've long since moved my systems to more user focused technology where possible though.

DanLM
DanLM

But don't you consider that Gmail could be considered the competition for the merger? And that the EU would not block it because of that? I am not trying to be pro MS here... I'm just trying to point out there is a huge competitor that MS/Yahoo merger would have to deal with just like they do now. Personally, I think both MS and Yahoo search sucks. Can't stand either of them. Only use them as a last resort when I can't find something elsewhere. And their web pages just iritate me with all the advertisements. If I want to see that much advertisements, I'll go to porn pages. Which is exactly what MS and Yahoo look like to me. Gaudy, all kinds of flashing pictures. Baaa. Again, I just think there is competition already. And this merger or want to be merger is a result of that competition. Dan

yellow911
yellow911

i'm no tech, like you guy's...i just am a member to try to learn something...so my very humble contribution is this...Yahoo's search page....what a bloody shambles....it would seem, in the rush for advertising revenue, that Yahoo have forgotten about the USER...i, amongst many, i suppose, can't abide all that crap on their page....gotta go looking for the search bar hidden amongst all that RUBBISH....why should i?......open google....simple, plain, no crap...search bar right there in front of you....no rubbish, SIMPLICITY, you Yahoo i****s.....sorry i'm not techy guy's, but that's a non-tecnical user's take.......

Neon Samurai
Neon Samurai

Doesn't that only run on Windows. Do you use IE? How's MS Office working for you? Got an MS Exchange server behind that Outlook? "the only MS app I run is Windows Defender" just seemed rather out of place. I couldn't see someone running it on a non-MS platform which means at least one or two other MS apps on top of the MS platform. For a moment, I considered if there was any way to only run Defender without any software platform behind it but that's not going to work either. Apotheon has a pretty good rant on corporations linked from one of the other discussions too. In short, the companies responsability too it's investors above and beyond the well being of it's customers while insolating the executive levels from moral obblications is the problem.

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