Yahoo – Microsoft Deal Not Off the Cards Yet!
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Microsoft is not letting go of Yahoo! as it claimed a couple of weeks back. They have issued a Press Release, which states the following:
“In light of developments since the withdrawal of the Microsoft proposal to acquire Yahoo! Inc., Microsoft announced that it is continuing to explore and pursue its alternatives to improve and expand its online services and advertising business. Microsoft is considering and has raised with Yahoo! an alternative that would involve a transaction with Yahoo! but not an acquisition of all of Yahoo! Microsoft is not proposing to make a new bid to acquire all of Yahoo! at this time, but reserves the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo! or discussions with shareholders of Yahoo! or Microsoft or with other third parties.
“There of course can be no assurance that any transaction will result from these discussions.”
So it’s a transaction not an acquisition – which means it might go the Facebook way. This comes after Jerry Yang had said that he was willing to negotiate – but Microsoft walked away. There was also a long drawn letter from Steve Ballmer to all the employees of Microsoft stressing on ‘focus’ among other things. Seems like Microsoft’s focus at this point of time is Yahoo!, and only Yahoo!.
The release says that Microsoft reserves the right to reconsider a bid that may be with other third parties – so a hostile takeover is not off the table just yet.
When I went to the Yahoo! Search Marketing conference last week, the general attitude I got was that Yahoo! was not looking to partner with Google in any way as has been speculated. They seem to be wanting to get stronger in search and also release their publication platform in search and other text and display related advertising to the long tail. Among other things they are strongly looking at Mobile especially in countries like India. It would be better for Microsoft and Yahoo! to combine in atleast some way and create a synergy to benefit both (think the McDonalds – Coca Cola partnership mastered by Warren Buffet which ultimately led to the success of both brands and formed and industry precedent).
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Adding more value to the content:- Yahoo’s brief response,
http://yhoo.client.shareholder.com/releasedetail.cfm?ReleaseID=310948
i had once great respect for company like microsoft…but thats wanning just like their hold on the pc……why cant they focus on building content like archiving it like google rather than buying companies like yahoo which is dwindling due to focus on more than 1 thing…….i think microsoft would be history if they do not launch great product bcos both cash flow business like office nd windows would be facing competition from google….nd people flocking to net for doing most of the work wud spell more trouble for the giant……..so my advice instead of buyouts focus on products nd emerging markets…..
Applications and activities are moving online - so dont you think they need to focus on web based acquisitions, saas, and the like?
saas will be almost free due to immense competition so microsoft can use tactics like seurity/portability as main theme