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Microsoft considers new Yahoo! deal

Microsoft considers new Yahoo! deal

Microsoft has issued a statement that says it is mulling a fresh deal with Yahoo! This time, an acquisition isn't on the table though... or is it?

Following Steve Ballmer's revelation that he'd called off the marriage between Microsoft and Internet portal Yahoo! earlier this month, the software giant has revealed that it is mulling a fresh deal with 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," said a statement issued by Microsoft yesterday.

The statement doesn't reveal a great deal, but the subtle dig at the end of it is enlightening, especially following billionaire investor Carl Ichan's bid to oust Yahoo!'s board of directors last week. Microsoft is prepared to talk with whoever wants to listen, it seems – this is quite a backtrack on previous statements that came out of the company after the original deal fell through.

A statement from Yahoo! followed soon after Microsoft's, and said nothing more than that Yahoo!'s board of directors are keen to maximise stockholder value.

"Yahoo! has confirmed with Microsoft that it is not interested in pursuing an acquisition of all of Yahoo! at this time. Yahoo! and its Board of Directors continue to consider a number of value maximizing strategic alternatives for Yahoo!, and we remain open to pursuing any transaction which is in the best interest of our stockholders. Yahoo!'s Board of Directors will evaluate each of our alternatives, including any Microsoft proposal, consistent with its fiduciary duties, with a focus on maximizing stockholder value," said the response.

Rumours suggest that Microsoft is proposing a partnership or joint venture with Yahoo! and its search advertising business, but despite both parties saying that Microsoft would not seek to fully acquire Yahoo!, I would be surprised if an acquisition isn't considered during this round of talks. This is especially given the fallout and subsequent uproar from Yahoo!'s shareholders following Microsoft's original withdrawal – the key to this is where Yahoo! suggests that it is willing to listen to "any Microsoft proposal".

Do you think Microsoft and Yahoo! will ever get together in some shape or form? Discuss in the forums.

7 Comments

Discuss in the forums Reply
badders 19th May 2008, 14:59 Quote
FFS Microsoft, give it up. Your MSN site is all useless, apart from maybe the hotmail bit, which is quite useful sometimes.

Yahoo's site is equally useless.

Neither search is worth much - hence the term "to google something" becoming prevalent in everyday language.

Use your money more wisely, I'd say.
steveo_mcg 19th May 2008, 15:02 Quote
Quote:
Originally Posted by badders

Use your money more wisely, I'd say.

Meh let them burn it, if it even saves one good company from being assimilated then i'd say it was money well wasted.
Firehed 19th May 2008, 15:19 Quote
Since the original takeover fell through, MS have been trying to devalue Yahoo so that they have a shareholder revolt and thereby allow MS to take over for less than the original offer.

Of course, I really don't see what good could come of it for either side, regardless of costs, and there's plenty of infrastructure-related changes that MS would want made that would kill off their new toy (such as migrating all of Yahoo off of the LAMP stack to IIS/.NET).
RTT 19th May 2008, 15:30 Quote
Naberius 19th May 2008, 16:11 Quote
MS give up!

I can only really see the benefits for yahoo, and that is getting them out of their current mess.
DXR_13KE 19th May 2008, 23:32 Quote
*insert jaws theme music*
Mr_Sinister 21st May 2008, 16:37 Quote
i say let them buy yahoo, as it will just have them spend there $£ just to have it fail:)

as all know that Google is one of (if not the) Best out there.
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