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Microsoft Walks

I don't like to blow my own trumpet but it happened exactly as I said it would here. Microsoft offered the $33 increase and Yahoo were nice enough to reject it. This gave Microsoft the opportunity to walk and when Yahoo started talking about outsourcing to Google Steve knew he could without losing face. A Yahoo that's been decimated by Jerry is not worth fighting over. It's become obvious to many that Jerry would rather kill his baby than see it thrive under Microsoft ownership. Make no mistake Yahoo would've become the web brand for Microsoft and would've been allowed to thrive. Steve would have to ensure it did because shareholders would not let them waste such a massive expenditure.


So what's next? Well for Yahoo we might see the end of Jerry. The AGM will probably be called very soon and assuming the shareholders aren't too upset at a management team that put their personal feelings in front of what's good for business then Yahoo will continue as is for a while longer. I can see a Q2 and Q3 full of problems and a possible new Microsoft offer next year after Jerry loses his job at the AGM.


Microsoft now need to seriously consider buying up companies like Twitter and perhaps looking at a deal with AOL. Time-Warner will be happy to get rid of AOL and Microsoft will gain a useful entity, user-base and engineers who will be more open to Microsoft being their masters. I think it's time to get rid of MSN or certainly redesign it. The site needs to start incorporating more things for users to do and start becoming more social. The Live and MSN brands have fragmented Microsoft's offerings too much, it's time to bring them together. Microsoft can use the $44billion to produce a much better product than they would've bought but they need to start now.

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