Posted May 10, 2008 12:47 pm by with 3 comments

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I’m sure it comes as no surprise that everyone and their dog is talking about the fact that Microsoft is “officially” not interested in Yahoo! but it this actually a scenario people believe? Given the way things have unfolded up until this point, I’d definitely say that it is not the case.

Basically, we have two big companies playing cat & mouse and that’s about it. As I’ve mentioned on one of my previous guest posts here on MarketingPilgrim, we have two companies, one willing to buy at the right price and one willing to sell at the right price. And, since they seem to be unable to reach an agreement as far as that price is concerned, guess what they will do?

Exactly, the company which has made the offer will be interested in doing whatever it takes in order to make their bid seem like a generous one (even if that means resorting to more or less ethical attacks) and the other company will be interested in making it seem that they are worth far more and that the bidder should be thankful that they are willing to negotiate in the first place.

Under such circumstances, it’s only natural that everything is as unpredictable as it gets and I seriously doubt that Microsoft is willing to let go, no matter what they have to say. Sure, they’re attacking Yahoo! for some of their decisions (especially the Google arrangement), but are they doing that because they are not satisfied with the way things have unfolded or because they would like to see the Yahoo! stock price decrease so that they have an important edge as far as future negotiations are concerned?

At this point, both companies are still playing the game and let’s just say that both of them would most likely be willing to reach an agreement under the right circumstances. From a potential agreement to a hostile takeover, we shouldn’t eliminate any possibilities as far as this equation is concerned.

Does anyone believe Microsoft at this point? Let’s just say that, even in only on a subconscious level, most people have their doubts and that things may just get interesting in the near future. After all, if that’s the way events have unfolded up until this point, it’s only fair to assume that the two companies will entertain us in the near future as well.

Best wishes,

Alan Johnson