Microsoft Grows Impatient with Yahoo. Again.

Posted by: Rob Hof on April 01, 2008

Microsoft is saying without saying that it’s not going to raise its offer for Yahoo. According to the Journal:

Such pronouncements are standard in deal negotiations but people close to Microsoft insist the stance isn’t posturing.

Right.

I’m not sure why Microsoft feels the need to plant this signal now. Maybe it’s the prospect of watching Google, which just closed its DoubleClick acquisition, steal a march on online display ads while Steve Ballmer twiddles his thumbs waiting for a phone call from Jerry Yang. Maybe Microsoft figures Yahoo’s just-closed first quarter will be awful enough that $31 a share will start to look pretty good to Yahoo’s board.

But I’m still betting some kind of sweetened offer—even an all-cash offer for the original $31—will do the trick eventually.

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Reader Comments

BVF

April 1, 2008 06:08 PM

Yahoo isn't worth the money.

David

April 1, 2008 06:39 PM

Typical of Silicon Valley companies, Yahoo will continue to drink its own Kool-aid and think that the Web 2.0 cycle is not going to turn like the Web 1.0 one.

Unfortunately this arrogance will be its own undoing. When companies take religious matter (Open versus Closed, Hip San Francisco versus Conservative Redmond) as the primary drivers for what is a survival and financing issue then the price that will be paid will be hefty. They are lucky if Microsoft actually keeps this offer on the table much longer. I personally wouldn't have paid more than $28 a share for them, which seems to be more or less what the market is betting on.

jane

April 1, 2008 11:38 PM

yahoo is not hip by any stretch. even compared to microsoft.

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BusinessWeek writers Peter Burrows, Cliff Edwards, Olga Kharif, Aaron Ricadela, Douglas MacMillan, and Spencer Ante dig behind the headlines to analyze what’s really happening throughout the world of technology. One of the first mainstream media tech blogs, Tech Beat covers everything from tech bellwethers like Apple, Google, and Intel and emerging new leaders such as Facebook to new technologies, trends, and controversies.

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