Microsoft (finally) drops bid on Yahoo

by multippt on May 5, 2008

 Microsoft Yahoo

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”).

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