Microsoft Gives Yahoo! A Deadline

April 5, 2008

Microsoft has told Yahoo! they need to accept the January bid by a certain date (three weeks from now) or Microsoft will go “hostile” – meaning a proxy war and a lower bid.

Certainly, Microsoft still retains the upper hand. I agree with their statement that since January, the economy has deteriorated significantly. It won’t be better in three weeks, and will more likely be worse.

If Yahoo! turns down the Microsoft bid, or lets the deadline pass, Yahoo! stock will certainly shed all the gains it has taken on since the bid was floated, surely sending it below $20.

The next key date to watch is Yahoo! earnings: April 15. If they suck, hello Microhoo. It’s also possible that Yahoo! management knows all too well that they will suck, and will prefer to just join up with Microsoft before April 15 so those crappy earnings be someone else’s problem.

Of course, Yahoo! could always report some awesome earnings come April 15 – but seriously, the way things have been going – do you really think that’s going to happen? Hello, Microhoo. I just don’t see this working out any other way.


  1. Mike says:

    Such a shame. Well, Zenphoto looks nice, that wasn't around when I last tried self-hosted online galleries (and gave up, using Flickr instead). I might give that a try.

    As for delicious, it seems Scuttle (the open source alternative) hasn't had development in a while. Like, 2006. Bummer.

    Microsoft, I hate you so much. I recently (finally) watched the D5 video of Steve Jobs and Bill Gates, and gained a lot of respect for Gates. He's a smart guy. But this kind of behavior makes me continue to hate Microsoft.

  2. papa says:

    Yeah, I think it's game, set and match. The refs just haven't called the game yet. If Yahoo has any crazy moves left up its sleeve, they better play 'em now. But honestly, I don't think anyone outside of yahoo expects any bold/defiant moves from Yahoo. It's just not very Yahoo-like. Yahoo will continue to play possum and things will go hostile.

    Hotmail/yahoomail will make for an interesting combo. Though I shudder to think about how this integration/assimilation will play out. One can only imagine that the Yahoo brain drain of the last several years will continue — with Google, Facebook and scads of Silicon Valley startups being the primary beneficiaries.

  3. webomatica says:

    I definitely have a love / hate thing going on with Microsoft, too. The silly thing about this whole Yahoo business is I don't really know what Microsoft will get out of it long term, other than eliminating a competitor. I think Yahoo! employees will start a mass exodus and at worst Yahoo! could be a big albatross around Microsoft's neck.

  4. webomatica says:

    I read on another website the apt observation that the sluggish behavior that got Yahoo! into this mess is in ample evidence in how Yahoo! has handled the Microsoft offer. They move far too slowly and have no “crazy moves.”