MicroHoo: Fish or Cut Bait Already!
When will the Microsoft and Yahoo drama end? Is it just me, or are other people getting sick of this buyout/hostile takeover/partnership fiasco?
Yesterday Microsoft announced that it is (again) in talks with Yahoo. To what extent, that is all speculation…but what we do know is that it will NOT be a complete takeover/buyout as originally planned. (or so they say…. for now) Microsoft made clear in a statement released yesterday that the offer “would involve a transaction with Yahoo but not an acquisition of all of Yahoo.” However, the statement continues, “Microsoft is not proposing to make a new bid to acquire all of Yahoo at this time, but reserves the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo or discussions with shareholders of Yahoo or Microsoft or with other third parties.” (Ah Ha!)
So what options are speculated to be on the table if not an all out takeover?
- Microsoft buys Yahoo’s search business: some have alluded to Microsoft buying out Yahoo’s Panama technology and rolling into their own search efforts in order to take on Google as the leader in search. My Opinion: Yahoo makes out like a bandit with this option, but overall it’s an awful idea. Their search business is sub par at best. Combine that with Microsoft’s search technology and it is still no where near the likes of Google.
- Yahoo outsources its search to Microsoft instead of Google (whom they are in talks with currently): The Sillicon Alley Insider reports that “Microsoft has proposed a cooperative pact in which Yahoo would likely display advertisements sold by Microsoft alongside Web search results delivered to Yahoo’s users. The intent, these people say, is to head off talks between Yahoo and Google Inc. over a similar relationship.” My Opinion: Not a bad idea. This deal would ultimately take Google out of the picture for the time being and eliminate the regulatory fight that would likely ensue if Yahoo/Google team up. However – wouldn’t this mean that Microsoft has to outbid Google for this portion of Yahoo’s business? Is the cost/benefit really there for Microsoft to make this sort of bid? I’m not so sure it is.
- Microsoft resumes complete buyout talks: been there done that. Will round three be the charm?
- Microsoft walks away…. for good: highly unlikely. Don’t you think?
The answer to this question may be revealed on Wednesday at Advance08, but until then it is all speculation. But by God, I hope they do something soon. I don’t know that i can take one more RSS feed on this topic! (she says as she just adds fuel to the fire.)
What are your thoughts? Anyone else care to weigh in on what tricks Microsoft might have up their sleeves? Or which option Yahoo should concede to?
