This walk away has thrown open some interesting opportunities for the gladiators in the coliseum of Web for the search supremacy.
Microsoft:
Now that MSFT has walked away from the deal, now that they have 45 Billion in their pocket plus the saved cost of integrating the combined entity, platforms and people, which they would have spent instantly, MSFT will be closely watched how they intend to fight all alone, all the more vigorously.
In the process, MSFT has also smartly weakened any possibility of Yahoo being bought out by anyone for a 47B price tag. Now they may even focus on moving quickly to 2nd spot with some other smaller acquisitions and deals.
Yahoo:
Now that Yahoo has proven beyond any doubt that they are worth 47 billion (42 B on the first offer + yesterday’s 5 B top up), particularly management has to answer Yahoo shareholders how they are worth the asking price of 52 billion and also detail their plans how they intend to keep that position.
All the eyes will be on their stock price on Monday and if drops considerably, then Yahoo might have to face the wrath of their shareholders and employees, who otherwise could have made money particularly in these difficult times.
Google:
This giant will be the happiest lot. Nothing has changed....
They can get on with their business, as the second and third in line competitors are at a far distance.
Had the deal gone through, the combined MSFT-Yahoo entity could have been a formidable competitor.
One has to wait and see how GOOG intends to proceed with their supportive actions and cross advertising deals with Yahoo. There could be lens on these dealings with Yahoo from the monopolistic angle.
Sunday, May 4, 2008
Microsoft Walks Away...
Today, I woke up to the news of Microsoft walking away from Yahoo offer.
One can sense the feeling of Microsoft’s by Steve Ballmer’s closing note on the letter to Yahoo’s Jerry Yang. http://www.microsoft.com/presspass/press/2008/may08/05-03letter.mspx
“I still believe even today that our offer remains the only alternative put forward that provides your stockholders full and fair value for their shares. By failing to reach an agreement with us, you and your stockholders have left significant value on the table.
But clearly a deal is not to be”
I have friends from both open source community that loves whatever Google does and Microsoft community folks who swear by MSFT.
The mood on both sides is quite similar. While the MSFT folks rejoice that their favorite brand walked away saving 45 Billions and folks from other end rejoiced that Yahoo will be able to innovate. And finally reading comments, the mood at Yahoo also seems to be filled with Joy!!!
So, what Microsoft intend do that $ 45 billion is what will be interesting to watch in the days to come.
Here is a clue
"We have a talented team in place and a compelling plan to grow our business through innovative new services and strategic transactions with other business partners. While Yahoo! would have accelerated our strategy, I am confident that we can continue to move forward toward our goals,” Ballmer said.
“We are investing heavily in new tools and Web experiences, we have dramatically improved our search performance and advertiser satisfaction, and we will continue to build our scale through organic growth and partnerships,” said Kevin Johnson, Microsoft president for platforms and services
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