Posted April 7, 2008 9:58 am by with 8 comments

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There are so many different ways of looking at the ongoing (non) negotiations between Yahoo and Microsoft. Judging by the letters that went back and forth this weekend, you’d think it was a conversation going on between two arguing parents: “You can tell your Mother, that my offer to take her to Wendy’s for dinner, is fair and final.”

Instead, I think it’s more appropriate if we look at the antics as some kind of “dowry” negotiation. When you boil it all down, it’s as simple as this.

Microsoft: “By any fair measure, the large premium we offered in January is even more significant today. We believe that the majority of your shareholders share this assessment, even after reviewing your public disclosures relating to your future prospects.”

Translation: No one else in the village wants you, but we’ll take a chance and maintain our dowry of 3 pigs–even though you’ve chipped a tooth since we made this offer.

Yahoo: “We are open to all alternatives that maximize stockholder value. To be clear, this includes a transaction with Microsoft if it represents a price that fully recognizes the value of Yahoo! on a standalone basis and to Microsoft, is superior to our other alternatives, and provides certainty of value and certainty of closing.”

Translation: We are worth 4 pigs (and maybe a chicken) and you insult as by offering only 3 pigs (one with a crooked leg).

So the public game of brinkmanship continues. As we suspected earlier, Yahoo is indeed waiving around AMP as a sign it has big plans this year. Meanwhile, Microsoft is reiterating its threat of a proxy fight, if Yahoo doesn’t come to the table within 3 weeks.

Now a question you probably never thought you’d find yourself answering: how many pigs do you think Yahoo is worth?

  • Obviously, Microsoft doesn’t think of Yahoo! in the same way as Johnny Lingo did with his eight cow wife.

  • Dean

    It doesn’t matter how many pigs Yahoo is worth because after the (inevitable?) acquisition by MSFT they will be bacon on the plate of Google.

  • I’m sorry, I just don’t see how this purchase will help Microsoft in their competition with Google. Yahoo search isn’t much better than MS.

  • @Paul & Dean – you guys are as bad as me! 😉

  • Thanks Andy. This article made me laugh – just what I needed at the end of a Monday.

  • Can I have some eggs with my bacon? And maybe a side of hash browns? A little OJ and a cup of coffee.

    What? Oh we’re talking about search engines. My bad.

  • Will the big bad G-wolf come and blow the little pig’s houses to the ground?

  • lol

    Three little piggies went to market!