Microsoft ‘in a quandary’ over Yahoo
p2pnet news | Advertising:- What to do. What to dooo?
Bill and the Boyz are no closer to buying Yang and the Gang, leaving Microsoft in a “quandary” over whether or not the deal is still worth pursuing, says Associated Press.
The story came over the weekend and although the offer was due to expires Saturday, “Microsoft has indicated it probably won’t reveal its next move until early next week,” it says, going on:
“The tense mating dance is at a standstill because Yahoo’s board has repeatedly said it won’t sell to Microsoft for less than $45 billion, even though the bid hoisted its stock shortly after it hit a four-year low in late January.”
The world is breathless with anticipation and, “The impasse has left most analysts predicting Microsoft will either sweeten its offer or attempt to replace Yahoo’s board with a slate of directors who will embrace a takeover,” says AP, adding:
“But the architects of Microsoft’s bid -Chief Executive Steve Ballmer and Chief Financial Officer Chris Liddell - have been signaling the Redmond, Wash.-based company might abandon the bid and leave Sunnyvale-based Yahoo twisting in the wind.”
On Nooooooo!
Yes.
On the other hand, though, “The public remarks of Ballmer and Liddell could be just part of a negotiating ploy aimed at pressuring Yahoo to the negotiating table.”
Not only but also, “By turning a cold shoulder, Microsoft could position itself to return with another bid this summer in hopes of completing the acquisition without suffering through the disruption and rancor likely to erupt if Microsoft were to try to oust Yahoo’s board in a risky process known as a proxy contest.
“This scenario could only pan out if Microsoft is correct in its belief that Yahoo is stuck in a downward spiral after steadily losing ground in the online advertising market during the past two years.”
So it’s all down to advertising and with that in mind, “Yahoo could try to extract a higher bid by farming out some of the advertising on its Web site to Google,” says the story.
After all, Google has already said it’ll run ads alongside a small percentage of Yahoo’s online search results in America.
Yahoo, “reportedly hopes to build upon the Google deal by combining its online operations with Time Warner Inc.’s AOL, which has been struggling to regain its stride after stumbling badly for years,” said the Associated Press earlier in the month, going on:
“The two sides just completed a two-week trial that allowed Google to show text-based advertising along a small percentage of Yahoo’s search results.”
Combined, Google and Yahoo control more than 80% of the US search market, says the latest AP story, adding:
“Yahoo also has been exploring a possible merger with the online operations of Time Warner Inc.’s AOL, but most analysts view that as a weaker alternative to a Microsoft takeover.
“As it stands now, Yahoo’s first-quarter revenue growth of 9 percent is far behind both Google’s and Microsoft’s online services division, which climbed 42 percent and 40 percent, respectively.
“That’s just one reason Garrity believes Ballmer and Liddell are realizing that Microsoft doesn’t need Yahoo at any price.”
If and when Microsoft gets its hands on Yahoo, we’ll be one step closer to a joyous online world flooded with advertising and controlled by a tiny handful of robber barons.
.
.Stumble It!
Associated Press - Microsoft in quandary over Yahoo bid as key deadline looms, April 26, 2008
already said - Google ads on Yahoo, April 9, 2008
Associated Press - Internet, media stars line up for Yahoo, Apreil 10, 2008
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