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.
For more on this story, see the following:
- Microsoft pulls its Yahoo offer (CNET)
- Microsoft says proxy battle not worth it (CNET)
- Microsoft walks: Five reasons why it’s a good move (ZDNet)
- Microsoft withdraws offer for Yahoo (Reuters)
- Microsoft To Yahoo: Take a Hike! (GigaOm)
- Jerry Yang’s memo to Yahoo staff (CNET)
- Ballmer’s e-mail to staff on Yahoo (CNET)
- Why Microsoft coveted Yahoo (CNET)
- Yahoo Prepares For A Black Monday (TechCrunch)
- Yang betting on Y!Open to save Yahoo! (CNET)