Sunday, 6 April 2008

Microsoft to Yahoo: it's the easy way or the hard way.

Microsoft sent Yahoo a letter yesterday, April 5th, that expressed the Redmond company's frustration with the way Yahoo have been handling the offer Microsoft made two months ago. The letter can be found here. Microsoft have given Yahoo 3 weeks for the two companies to come to a deal before they will take the offer directly to the shareholders and try to replace the Yahoo board.

It's about time this letter was sent. Yahoo have made Microsoft look like a fool over the last couple of months and it's been embarrassing to watch. Personally though I don't think Microsoft should conclude any deal at this stage. They need to pull out of the deal, let Yahoo sink and then move back in with a lower offer if they really want to purchase the company. The better choice however would be to pull out and not move back in. Keep the war chest intact, especially in this growing time of economic unrest, and bare in mind that if the Google numbers are correct and the money from online ads is decreasing then this deal may not be as big a money making idea as it was in February.

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