Microsoft to Yahoo!: We're Not Giving Up!

[Darius Wey]

http://www.microsoft.com/presspass/...t-response.mspx

"Microsoft Corp. (NASDAQ:MSFT) today issued the following statement in response to the announcement by Yahoo! Inc. (NASDAQ:YHOO) that its Board of Directors has rejected Microsoft’s previously announced proposal to acquire Yahoo!: It is unfortunate that Yahoo! has not embraced our full and fair proposal to combine our companies. Based on conversations with stakeholders of both companies, we are confident that moving forward promptly to consummate a transaction is in the best interests of all parties. We are offering shareholders superior value and the opportunity to participate in the upside of the combined company. The combination also offers an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market. A Microsoft-Yahoo! combination will create a more effective company that would provide greater value and service to our customers. Furthermore, the combination will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising. The Yahoo! response does not change our belief in the strategic and financial merits of our proposal. As we have said previously, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal.""



Long story short, Microsoft is a little disappointed, but undeterred by Yahoo!'s rejection of the $44.6 billion bid, and seems intent on pressing on with the potential acquisition one way or the other. It's unclear what will unfold in the days ahead. We may see the initial bid get pushed to a staggering $57+ billion, or more realistically, we may see it stay as-is and go directly through the shareholders in an attempt to put pressure on Yahoo!'s Board of Directors. Get out the popcorn, folks. This is proving to be one exciting corporate tennis match.

[Darius Wey]

http://www.microsoft.com/presspass/...t-response.mspx

"Microsoft Corp. (NASDAQ:MSFT) today issued the following statement in response to the announcement by Yahoo! Inc. (NASDAQ:YHOO) that its Board of Directors has rejected Microsoft’s previously announced proposal to acquire Yahoo!: It is unfortunate that Yahoo! has not embraced our full and fair proposal to combine our companies. Based on conversations with stakeholders of both companies, we are confident that moving forward promptly to consummate a transaction is in the best interests of all parties. We are offering shareholders superior value and the opportunity to participate in the upside of the combined company. The combination also offers an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market. A Microsoft-Yahoo! combination will create a more effective company that would provide greater value and service to our customers. Furthermore, the combination will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising. The Yahoo! response does not change our belief in the strategic and financial merits of our proposal. As we have said previously, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal.""



Long story short, Microsoft is a little disappointed, but undeterred by Yahoo!'s rejection of the $44.6 billion bid, and seems intent on pressing on with the potential acquisition one way or the other. It's unclear what will unfold in the days ahead. We may see the initial bid get pushed to a staggering $57+ billion, or more realistically, we may see it stay as-is and go directly through the shareholders in an attempt to put pressure on Yahoo!'s Board of Directors. Get out the popcorn, folks. This is proving to be one exciting corporate tennis match.

[ajwalker]

Could someone please relieve Steve Ballmer of his duties and put Microsoft out of its misery?

This was, and still is, a really stupid idea. And now they are going to go ahead with a hostile take over???!!!???

Even dumber.

[Rocco Augusto]

On the contrary, I think this move is brilliant. There isn't any technology based company at the moment that can stand toe to toe with the juggernaut known as Google. Let's face it, nowhere in the near future will we ever see the Yahoo or Microsoft trump Google as long as they're separate companies. Microsoft is too of a company mindset wise and Yahoo! while having a great deal of vision, is to disorganized.

Combine Yahoo!'s vision and vast online portfolio with Microsoft's personnel resources and billions of dollars from software sales they make each month and you can have a very strong competitor to take on Google.

[dstrauss]

Anyone else seem to hear momma saying "Two wrongs don't make a right young man!"

I heard an analyst last week say it best - "Ever hear anyone say they were going to 'Yahoo' or 'M$oft' it? (Unless, of course, you've been M$oft'd before, so to speak). I just love the spin that combining #'s 2 & 3 will INCREASE competition in the space. WRONG. It will only mean that MicroHoo can charge the same, or more, than Google for advertising eyeballs. Such a heartwarming prospect for an open internet.

[Rocco Augusto]

Originally Posted by dstrauss

I just love the spin that combining #'s 2 & 3 will INCREASE competition in the space. WRONG.

Increasing competition, most likely not. Creating a stronger competitor, no doubt about it.

Microsoft could give away gold bars to everyone who owns a Windows system and there would still be people strongly against it for the simple fact that it was Microsoft. Sure Microsoft could seriously screw this up, but there also a chance that this merger will create a much stronger brand and could force Microsoft to inject some fresh blood into it's now changing hierarchy.

Yahoo! has a ton of great properties (Meedio, Del.icio.us, Flickr, Yahoo! Mail, etc), it is a no brainer to see why Microsoft would want to purchase them as well as go through with such a hostile take-over. Sure it's a little vicious but it's exciting to see Microsoft foaming at the mouth again instead of rolling over and letting everyone rub it's belly.

[ajwalker]

It would have been cheaper to let Yahoo continue to shoot itself in the foot and pick up those pieces (Flickr, et al) at "Going out of Business" prices as opposed to trying to ingest a company for an exhorbitant amount.

Way too much overlap, Microsoft going into debt over it and it still doesn't really solve any core issues or give them a competitive edge.

Hopefully Bill will pull Steve aside before his last day and remind him Microsoft is a software company, not an ad company, not a search company, but a software company.

I'm hoping the whole Yahoo thing crashes and burns as soon as possible so Microsoft can get back to the business at hand - being a better software company.