Death Knell
Posted on May 4, 2008
Or death nail…..as in the ‘nail in the coffin’. That describes the final decision rendered this weekend by Microsoft as they sent Yahoo a letter detailing their reasons for no longer pursuing a merger.
That’s right. It’s over. The merger is off. As we blogged on 4/30, there were just too many dollars separating the firms to reasonably think they would continue the pursuit. Microsoft had shown no reasonable willingness to increase the offer beyond the initial amount. And Yahoo certainly felt they were worth a lot more. So they have gone their separate ways.
However, the real reason, based on Ballmer’s letter, seemed to be less dollars and more Google. Interesting that a big part of what Microsoft was after would have been to combine forces in a giant advertising venue that would give rival Google a run for their money in the Adwords front. Yahoo recently entered into an ad contract on a short term basis with Google. While this may have been intended for some time, it’s timing was fortuitous and caused Microsoft to quickly rethink its agenda. What this may have in reality been is a poison pill. Its timing allowed Google to scare off the suitor and Yahoo to remain in control of its own destiny. So, though looking for a Google-beater, Microsoft got beat by Google…yet again.
» Filed Under Google, Merger News, Microsoft, Yahoo
Comments
One Response to “Death Knell”
Leave a Reply
[…] An interesting undercurrent has been taking place at Yahoo, beginning even before Microsoft’s offer to buy was made and eventually rejected. […]