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.