Microsoft continues to circle Yahoo!

by Stephen Withers

Monday, 19 May 2008

Page 1 of 2 ! Despite withdrawing its bid for Yahoo! in terms that suggested it was walking away completely, Microsoft continues to circle its prey. But the acquisition remains off the table, what's the next step? Over the weekend, Microsoft issued this terse statement: "In light of developments since the withdrawal of the Microsoft proposal to acquire Yahoo! Inc., Microsoft announced that it is continuing to explore and pursue its alternatives to improve and expand its online services and advertising business. Microsoft is considering and has raised with Yahoo! an alternative that would involve a transaction with Yahoo! but not an acquisition of all of 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.   "There of course can be no assurance that any transaction will result from these discussions." The idea of purchasing selected parts of Yahoo! ties in with moves by Carl Icahn to take control of the board. Icahn's history suggests he would be far more amenable to the idea of breaking up the company than would the existing board and executives. That said, it is not beyond belief that the Yahoo! board could see a selloff of selected assets or business units as a way of fending off Icahn's appeal to shareholders in the looming proxy contest. It would effectively send the message "hey, we've already realised some value for you - there's no need to bring in the other guy." How did Yahoo! respond? CONTINUED << First page <   1 2 Next page > Last page - Post your comment >>

 

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