Webreakstuff blog

MSFT and YHOO: It’s finally over

It’s already all over the news so you probably know already – Microsoft walked away from buying Yahoo because they ultimately couldn’t agree on price. Yahoo wanted $37+/share and Microsoft was offering a maximum of $33/share – according to them, already a big premium over the value at which negotiation started (which is in fact the truth). When I first posted about the merger possibility, my biggest argument against it was the culture shock because the two companies have distinctive ways of thinking. Who wins now? I think both companies lost.

They both lost because Microsoft comes out of this deal proposal with a failure, while Yahoo will quite likely see its stock value plummet. This isn’t the only problem for Yahoo, though – they’ll still need to figure out a solid strategy going forward that will in fact deliver value to its shareholders. Personally, I don’t think cutting an ad deal with Google is the right way either because it only proves how their own ad business is not so good.

I guess we’ll see how things progress, but after thursday and friday’s news about meetings finally taking place about the acquisition, I thought we’d see a deal. And while initially my opinion was that a deal would be a bad thing, now I’m not sure, given how the future of Y! seems bleak. Well, at least this whole subject is done for, for now.

More coverage at Techmeme, Techcrunch, Microsoft’s PR, Yahoo’s PR. Image credit: Mr Gee at Flickr.

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