"Microsoft Corp. (NASDAQ: MSFT) today announced that it has withdrawn its proposal to acquire Yahoo! Inc. (NASDAQ: YHOO). "We continue to believe that our proposed acquisition made sense for Microsoft, Yahoo! and the market as a whole. Our goal in pursuing a combination with Yahoo! was to provide greater choice and innovation in the marketplace and create real value for our respective stockholders and employees," said Steve Ballmer, chief executive officer of Microsoft. "Despite our best efforts, including raising our bid by roughly $5 billion, Yahoo! has not moved toward accepting our offer. After careful consideration, we believe the economics demanded by Yahoo! do not make sense for us, and it is in the best interests of Microsoft stockholders, employees and other stakeholders to withdraw our proposal," said Ballmer."
What a dramatic three months it's been. The press release continues with a very detailed letter from Ballmer explaining why Microsoft's offering of $5 billion on top of the initial bid wasn't enough for Yahoo!, and why the proxy contest never too place. No Microhoo!, I guess. Now, I wonder if Goohoo! is on the cards.
Update: Yahoo! shares fell 22% in pre-market trading. NYSE opens in under an hour.
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With the history of Microsoft being what it is, I almost think that Microsoft will now refocus from competing with Google to killing Yahoo. “If we can’t have them, nobody can.” Maybe Microsoft goes to whatever Yahoo is doing, i.e. it’s tests with Google, deal with Time Warner, etc., and sabotage those efforts just to spite Yahoo.
If that happens, I can see Microsoft coming back to Yahoo and starting a hostile takeover once Yahoo’s stock is ruined and is maybe in the $12-$16 range.
Or they may just walk away. RIIIIIIIGHT!
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And there you are.
I was just thinking, "What could take this headache I have over that edge to a full blown migrane?"
And there you are.
- Dr. Cox, Scrubs
As a user of a number of YAHOO!'s services, and some pay services in fact, I must say I'm very happy this deal fell through. Seems the last few years everything Microsoft has touched has turned to ****, and I didn't want their bumbling ways touching my YAHOO! services!
In other news I look forward to grabbing a full OEM copy (or two) of Windows XP Pro with SP3 built in once it's out and before it goes off the market in June. Vista is yet another Microsoft trainwreck in my opinion.....
The improvements that this three big companies have brought to the services they offer were all made possible by the competition between them.
While Google still dominates the search and online advertising markets it's clear that the failed birth of Microhoo is the best way to go for us, the users.
Microsoft Walks Away From Yahoo!
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