The Next Web

So what’s the latest on Microsoft and Yahoo?

Written on February 4, 2008 – 12:07 pm
Ernst-Jan Pfauth, editor in chief

As Scott Karp from Publishing 2.0 stated two days ago, not writing about the bid of Microsoft on Yahoo means losing the ‘media/tech blogger license’. Yet since Boris already wrote an thorough analysis about the possible deal on The Next Web Blog, I prefer to just give you an update on the latest developments.

Google Alliance
Yesterday a source familiar with Yahoo’s strategy said that the company is considering a business alliance with Google ‘as a way to rebuff a $44.6 billion takeover proposal by Microsoft’.
Read more on Reuters

Poison Pill
Microsoft may end up disappointed since Yahoo has some defense at its disposal should Microsoft’s bid turn hostile. In 2001 the tech company adopted a poison pill. This is a defense mechanism that makes an offer incredibly expensive by giving shareholders the right to to convert their shares into a large number of common shares.
Read more on Yahoo News

Google’s Reaction
This is actually funny, Google is desperately holding on to their ‘do no evil’ credo, even when it comes to.. competition. The pot calls the kettle black.
Read more on Google’s blog

Microsoft reacts to Google
Microsoft responded quickly on Google’s accusation. General Counsel Brad Smith said: “The combination of Microsoft and Yahoo! will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and on-line advertising.”
Read more on TechCrunch

Eleven dreams and nightmares
If one giant tries to take over another giant, everybody starts fantasizing about what this might cause. So does one of America’s largest newspapers.
Read more on The Washington Post

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