Posted July 2, 2008 4:26 pm by with 12 comments

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Sometimes we just can’t let dead horses lie. That’s okay, neither can Microsoft. After months of more drama than a daytime soap (ahem) with the attempted merger/acquisition of Yahoo, Microsoft pulled their offer back in May.

And now they’re saying, “Whoopsiedoodle. On second thought . . . we will be coming back fighting.” The Wall Street Journal reports today that Microsoft is planning another run at Yahoo—and this time they won’t be going it alone. They’re actively looking for partners to dismantle Yahoo. Current candidates include News Corp. (aka Nick on Y&P) and Time Warner (we may call him . . . Tim. He’s Alan (AOL)’s dad).

This isn’t exactly good news for already-beleaguered Yahoo chief, Jerry Yang. But the WSJ article presents a very different image of Yang than the one portrayed in recent lawsuits and power plays at the company.

Carl Icahn and several other stockholders have gone to great lengths to show Yang’s personal animosity towards Microsoft, which they believed was the main impediment to a deal. However, the WSJ article and its inside sources show a Yang who tried to drive a favorable bargain for his company and was ultimately very disappointed in the way the negotiations turned out:

When Mr. Ballmer explained that Microsoft was withdrawing its offer, Mr. Yang’s face fell, according to a person who was present.

Microsoft and Yahoo have already been in talks with News Corp and Time Warner/AOL throughout this year. Will one of them finally be able to reach a deal—and if so, who will be left standing?

  • Who knew that season two of “The Young & the Profitless” would come around so soon? 😉

  • Wow, they just don’t give up. Some people just don’t take “no” for an answer.

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  • Wow! Microsoft don’t give up!

  • They are going to save a load of money by forcing a deal at the current share price. We all saw this one coming. In poker you stand to lose big if your bluff gets called, this is what has happened here!

  • Importance of Yahoo as leader of internet services industry decreases every day while other services grow.

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  • They both need to team up with Google and so they can create a super giant.

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  • Yes, they will ultimately reach a deal, regardless of what the skeptics believe. I’ve watched stuff like this happen before. Microsoft is just too determined to let this one get away. I saw it with the Oracle / PeopleSoft acquisition a few years ago, when I was still a PeopleSoft consultant. It’s just a matter of time.

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  • Well of course they are going to get Yahoo. Balmer has said a dozen times that Google is the competition. That leaves Yahoo! to be beat or bought. MS has learned the hard way that it is better to buy because it is less painful in the end.

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  • I never thought they would really quietly go away. There are many ways to take over a company and it makes good business sense for both companies to work together.

  • Microsoft Dynamics is the result of MS buying Navision and Great Plains. For the first year they ran their business. Then they merged in MS with a name Microsoft Great Plains & Microsoft Great Navision.

    Now they are Microsoft Dynamics NAV & Microsoft Dynamics GP. Totally integrated in MS and new clients never know that the old companies existed. (and no layoffs during the acquisitions)

    MS can do it right. It’s just that Yahoo! has so many services that are crap that need to be scrapped, and that will cause problems.

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  • Microsoft need to either put their mark back on the internet, or they need to just slowly fade away like it seems they are doing, until they try to buy someone out.

  • As a longtime shareholder of MSFT I think they need to get into Yahoo. They need something to spice up their internet presence. They obviously don’t have the “cool” factor as Google does, but they’ll at least get in the game. Right now they’re no where near the gam.

    It’ll be interesting to see what happens.

    Of course, it could turn out like the Time Warner AOL merger…

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