Microsoft (finally) drops bid on Yahoo

Posted by multippt

Looks like Microsoft decided to withdraw it’s second bid (given the results of the first proposal, not many paid much attention to the second proposal) to acquire Yahoo. It’s not that surprising that the bid failed since after all, the second bid was only slightly higher than the first bid (but much less than what Yahoo wanted). This so-called ”hostile takeover” appeared to end with nothing more than a whimper. Well, at least now we know Yahoo is certainly not going to big Microsoft (or perhaps, Macrosoft?).

Sadly, Yahoo will eventually be taken over by someone, or some company. Microsoft will probably come back a third time, or probably much more, hoping Yahoo will eventually say “yes”. Despite Google “helping” Yahoo against Microsoft’s tyrany, it’ll take only time before Microsoft would probably finally get its hands on Yahoo, given Yahoo’s current deteriorating situation (stock market, etc. etc.). Certainly not-so-good news for the Yahoo community.

So what do Microsoft want to do with Yahoo?

There’s one thing for certain - Microsoft will NOT do anything related to search. The primary reason why Microsoft wanted Yahoo was not for Yahoo search or the hundreds of services Yahoo provided. Microsoft simply wanted the advertising portion of Yahoo (plus some other technologies to include in Microsoft’s ever-growing arsenal of proprietary software) since it’s going to be the next big thing that’s going to expand Microsoft’s wallet.

I guess time will tell before we will see Microsoft Yahoo (or Microhoo) in the near future.

Why no Microsoft Yahoo?

The first answer is obvious: Yahoo simply didn’t want Microsoft, and Microsoft now knows that. Given Yahoo’s constant turn-downs on Microsoft’s offer, as well as going as far as making deals with rival Google in relation with advertising (fancy Yahoo actually advertising Google AdSense rather than its own ads). In addition, Yahoo did not release any statement even when the dateline was due.

The community has been pretty neutral about this matter, but there are certainly some people who do oppose the takeover (thereby, calling it “hostile”). Why oppose? With Microsoft Yahoo, we will end up having to pay more for ads. Microsoft would attempt to use Yahoo to inflate ad prices everywhere and anywhere (as part of their “business plan”).