Microsoft May Pass On Yahoo!

Posted Apr 4, 2008

Microsoft Corporation may be reconsidering their bid for Yahoo! Inc. Microsoft’s $44.6 billion bid price was not satisfactory for Yahoo! even though the Internet company made a gross profit of $4.1 billion last year and $3.75 billion the year before.

Since Microsoft made their bid, Yahoo! let go many of their workers and handed away large sums of money and benefits as a severance package to former board members. Yahoo! has tried to find ways to alleviate a full takeover. Yahoo! talked to News Corp., AOL, and Google for potential deals but nothing significant happened after discussion.

“Microsoft has tried again and again to engage in substantive negotiations, but the board has simply refused,” stated an anonymous New York Times source. “Since the offer was made, the market has deteriorated and there are numerous indications that YahooĆ¢??s business has declined.”

Yahoo! signed up for Google’s OpenSocial initiative as a statement that the Internet search engine company supports data portability. This move also serves as a statement that Yahoo! is not ready to be bought out because this move directly supports Microsoft’s biggest online competitor.

All things considered, Microsoft may be ready to give up.

Information Source:
[1] New York Times: Lines Drawn for Microsoft and Yahoo, and Neither Is Ceding Ground by Miguel Helft