As Expected, Microsoft Got Rejected

Published by: Codrut Nistor, in News

February12th2008

Were you anxious to see how the Internet search landscape would change if Yahoo accepted Microsoft's bid? Well, you won't see that happening anytime soon, because what everyone was talking about this weekend became official - Microsoft's attempt to purchase Yahoo failed. Yesterday, Yahoo's board rejected the $44.6 billion cash-and-stock offer, ending a story that was started by Microsoft from a reason that may be completely different to the official version, but anyway...let's write the final chapter now, shall we?

Yahoo said NO

Before getting into the official story, I have to tell you a little story of my own. Early this morning, I went to an ATM to get some cash. There was a man in front of it waiting, and he said to me "it's frozen". Well, it was freezing cold at that hour, but the problem was the ATM froze for good - the man's credit card was blocked inside it, and on the screen was...a Windows command prompt!

As a conclusion to the short story above, I could only think about a Microsoft and Yahoo search engine that returns the BSOD when a query doesn't have results...or, even "better", crashes your OS. Good to know such a thing won't ever happen, or at least in the near future...

Getting back to the main story, all there is to say is that Yahoo said its management team, together with the legal and financial advisors, consider the offer as not being enough to match the cash flow and earning potential of the company, as well as recent investments made to improve its advertising platform.

In the meantime, Yahoo's board will look around for other "strategic options" (an alliance with AOL or even Google, maybe?), in order to "maximize value for all stockholders.".

Sounds reasonable to me, and I am sure Microsoft didn't find it pleasant at all to get another negative answer from Yahoo, but that's life - first, you win some, than you lose some. No official statement has been made by Microsoft yet, and if they will say something interesting, when this happens, be sure I'll get back to the subject!