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Microsoft Corp. and Yahoo Inc. senior executives met this week to discuss Microsoft's proposal to acquire the Internet company but failed to resolve any of their differences, according to people familiar with the matter.
The meeting, which took place near Yahoo headquarters in Sunnyvale, Calif., was the second between top executives from the two companies in recent weeks. Neither meeting included bankers.
The Microsoft executives showed no willingness to raise their cash-and-stock offer, and the Yahoo camp continued to refuse to enter formal negotiations without a sweetened bid, people familiar with the matter say.
Microsoft and Yahoo Hold Meetings To Discuss Proposed Acquisition [online.wsj.com]
M$ have their cash cow - so it's purely down to whether Q1 stacks up for Y! as to whether they get more, less or the same deal as was proposed back in Feb - can't wait to see next instalment... creative accounting watch out :0)
Hasn't everyone else dropped out the acquisition / partnership talks now?
Since then we've seen Yahoo play its hand poorly - speculation of cosying up with other parties has led to nothing concrete so their hopes of MS upping their bid are fading.
Add into that the worsening global financial outlook and you have a recipe for MS threatening to pull the offer if Yahoo don't play ball.
Yahoo should accept that the offer, regardless of your thoughts about MS, is more than fair.
A 50%+ premium on a company losing market share whilst heading into uncertain times for advertising looks like good value for YHOO shareholders - if MS pull ot the stock may return to th $15 to $20 range.
But Yahoo! still seems to be in the driving seat - they can either deal or not, with the price being secondary to their willingness to play.
So if they're still just talking, it appears they believe they can go it alone - or maybe feel that failing alone is preferable to drowning in M$?
joined:June 2, 2003
The problem is it takes Yahoo an exaggerated large work force to operate them.
Microsoft's management skills and technologies might be able streamline Yahoo's operation and bring back its value.
For Yahoo's sake, it should let itself be assimilated by Microsoft.
And if it doesn't happen, M$ still don't have the activities they so badly need (and would have got from Yahoo!), and Yahoo! will continue to stumble along, at least for a while.
The big issue is that the companies have very different cultures, and merging divergent cultures - especially in the web world - is never easy. The creative talent at Yahoo! - the very bits that M$ want - may simply hemorrhage away.
joined:Dec 29, 2003
I doubt M$ will raise the price - but they'll need to find some kind of a rabbit in Bill's hat.
If someone benefits from this deal goes it would be Google, as MS & Yahoo will be too busy managing the integration to fix any of their problems giving Google a free run of the market & Google will potentially emerge much stronger.
joined:Sept 20, 2000
If they didn't think they needed YHOO, they would ahve given up by now. YHOO has a lot that MSFT will never be able to build. MSFT at least thinks they need YHOO but it seems like Google will be the big winner if MSFT tries to swallow YHOO.
joined:June 2, 2003
The correct phrase should be "YHOO has a lot of properties that will take MSFT a few years to build and consolidate."
Yet, Yahoo has something MSFT doesn't have!
Yes, those precious search patents held by Inktomi and Overture/Altavista.
A pretty good reason to swallow YHOO.
Now, does it seem "Google will be the big winner if MSFT tries to swallow YHOO"?
I don't think so!
That's what they meant by giving Google the *chance* to be a very big winner. Nothings for sure in this world, even the value of those patents. As we know, Open Source is rapidly undermining that business model ;)
joined:Dec 29, 2003
Wow! Y! is a public company. No one forced them to sell shares to the public. Once public, you're fair game, if shareholders agree. Let Y! take a chance with the proxy battle.