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Mon, Sep 08, 2008 - 12:33 AM EDT  —  AAPL: 160.18 (-1.04, -0.65%)  |  NASDAQ: 2255.88 (-3.16, -0.14%)

Microsoft says it’s back in talks with Yahoo
Sunday, May 18, 2008 - 07:55 PM EDT

Microsoft Corp. today issued the following statement:

In light of developments since the withdrawal of the Microsoft proposal to acquire Yahoo! Inc., Microsoft announced that it is continuing to explore and pursue its alternatives to improve and expand its online services and advertising business. Microsoft is considering and has raised with Yahoo! an alternative that would involve a transaction with Yahoo! but not an acquisition of all of Yahoo! Microsoft is not proposing to make a new bid to acquire all of Yahoo! at this time, but reserves the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo! or discussions with shareholders of Yahoo! or Microsoft or with other third parties.

There of course can be no assurance that any transaction will result from these discussions.


Source: Microsloth

[Thanks to MacDailyNews Reader "Jim-TIV" for the heads up.]


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May 18, 08 - 08:05 pm Comment from: strong sell

Remember the definition of insanity?

Thought so.

May 18, 08 - 08:07 pm Comment from: strong sell

http://www.urbandictionary.com/define.php?term=insanity

May 18, 08 - 08:35 pm Comment from: It's About Time

I was quite glad to hear that MS is back in the Yahoo hunt. This move is reminiscent of the Time Warner and AOL's union.

Yahoo has been going down hill (I guess following Microsoft's lead). Ultimately, MS's lack of innovation will catch up to them - nothing like hanging a huge albatross around their neck to speed up the process. wink

May 18, 08 - 08:43 pm Comment from: Jim - TIV

please, don't ANYONE suggest that uncle fester be taken away from his spot at the head of this titanic in waiting. Besides being fun to watch, it's one of the best things for Apple.

May 18, 08 - 08:44 pm Comment from: Zune Tang®

Oooooohhhhh yes! Google and their little girlfriend Apple have to be crapping in their pants on this news. They thought they were safe. The marriage of Microsoft's market leading and innovative internet technologies and the hip, young brand that is Yahoo is a genius move. There are like a bazillion ways these companies compliment each other and their union will have an immediate effect on how we use the web.

How do you compete with that? Buh-bye Google and Apple.

Your potential. Our passion.™

May 18, 08 - 08:53 pm Comment from: zek

Funny, but I got half way through reading that and noticed I was yawning.

MW: Study. Has anyone done a study how frequently people yawn while reading about what MS are up to?

May 18, 08 - 09:08 pm Comment from: MacLovin

well, this doesn't affect me, I use google. And I guess I just enjoy the fact that microsoft is dumbe enough to go after yahoo

May 18, 08 - 09:25 pm Comment from: Gabriel

The Ballmer-led Microsoft is clearly a company in search of a clue. Yes we do want Yahoo… no we don’t, we’ll be just fine without them… no wait, maybe we do want Yahoo… nothing like publicly flip-flopping multiple times on a merger deal which could completely change your company.

As I’ve said before, I would really really hate the decreased choices on the internet resulting from MS and Yahoo joining forces in any meaningful way. MS certainly seems to be approaching a crisis point regardless of their involvement with Yahoo, so I’m not particularly excited to see Yahoo get sacrificed to accelerate that approaching crisis point.

Hopefully, everyone involved can negotiate like grown-ups (which means finding someone other than Ballmer on the MS side) and finally get this thing figured out, so their companies can actually move forward knowing where the heck they’re going – preferably in separate directions.

MW: lost – for Microsoft, extraordinarily appropriate.

May 18, 08 - 09:27 pm Comment from: Blue Dream

No matter what the headlines say...M$ wants ALL of Yahoo.

May 18, 08 - 09:34 pm Comment from: Sixvodkas

I love hearing all the talk of how this "merger" (hostile takeover) with Yahoo! would strengthen Microsoft's ability to compete with Google.

Like they've done such a bang up job with MS-Whatever-We're currently fielding...

May 18, 08 - 09:48 pm Comment from: dave

Now that we've knocked a couple of bucks off the share price, we are now happy to offer you $25/share instead of the $30/share we offered earlier. Of course, we would never do this intentionally [make a lowball offer, then cancel the offer, thus driving the price down]...

May 18, 08 - 09:54 pm Comment from: Kev

Microsoft seems determined to destroy themselves one way or another.

May 18, 08 - 09:54 pm Comment from: R

MS is strong in business, not necessarily tech. This persistence has to fit into some master plan. Don't write them off completely.

May 18, 08 - 10:27 pm Comment from: recovering MBA

MS is strong in business, not necessarily tech. This persistence has to fit into some master plan. Don't write them off completely.

The only master plan I see is "Completely piss away licensing revenue from a monopoly past, on increasingly desperate straw-grasps at the future".

MS only sees users and market share, and is fatally betting those users will stay loyal once MS fscks Yahoo up. MS doesn't get the notion of non-entrenched users who are truly free to choose...

May 18, 08 - 10:57 pm Comment from: alansky

Good! There's still a chance that Microsoft will choke on Yahoo. Not that I have anything against Yahoo (except ratting on Chinese dissidents).

May 18, 08 - 11:06 pm Comment from: akerbs

Poor Flickr might get MSed. Nothing deserves that.

May 18, 08 - 11:26 pm Comment from: Thomas

Personally I will completely discontinue use of Yahoo! if MS succeeds in acquiring it. There are probably a significant number of others that will do the same.

May 18, 08 - 11:28 pm Comment from: Thomas

No wait... would that make them my significant others?

I think I confused myself.

May 18, 08 - 11:41 pm Comment from: KenC

MS' actions smack of desperation. Yahoo! if it's smart will hold out for the $37 it wanted originally.

May 19, 08 - 01:46 am Comment from: Jubei

Here is the X factor. As long as MS is allowed to exist as a monopoly, they will win. Unlimited guaranteed revenue allows them to be arrogant and manipulative. Watch out for what MS is doing behind our backs while they create this diversion. We may look up and suddenly they have also monopolized the Internet itself. Look what's happening with the 100 dollar laptop initiatve. Suddenly MS will now have monopolized the OS on these devices and all the other goodies they can lock in with their OS.

May 19, 08 - 02:27 am Comment from: Petey

VAPOUR WARE!

The usual tactic from Microsoft to try and 'scare' the competition, in this case google, into thinking that they have something up their sleeves.

Chnaces are this wont be the 'google killer', it probably wont even be anything that will impact anyone.

May 19, 08 - 03:04 am Comment from: almux

Booh! Booh! Yahoo!
and...
Booh! Bye! M$ ... Go and buy it... Your time has been!

May 19, 08 - 05:06 am Comment from: British Mac Head

@Zune Tang
You never fail to make me giggle.

I seriously hope you are just winding us up coz it sounds like you have been at the 'shrooms again.

grin

May 19, 08 - 08:12 am Comment from: Hm...

Since MS seems unable to successfully execute anything other than illegally leveraging a monopoly to destroy competition, the "Ballmer assimilates Yahoo" adventure will become an MBA school case study as a counterexample to sound business operation.

"Bring it on."

May 19, 08 - 08:22 am Comment from: Cubert

@Jubei,

"Look what's happening with the 100 dollar laptop initiatve. Suddenly MS will now have monopolized the OS on these devices and all the other goodies they can lock in with their OS."

Exactly! That story is not getting nearly the press coverage or the public scrutiny that it deserves.

May 19, 08 - 08:34 am Comment from: Moo

I just wish the 'softies would admit it;

MS's attempted hostile takeover of Yahoo isn't about competition, it's about MS's inability to compete when people are given a choice.

Nothing irks 'softies more than having it proven that MS can't compete unless they cheat.

May 19, 08 - 08:43 am Comment from: Mr. Reeee

As some predicted, MS is at it again.

With their first bid, Yahoo's stock price dropped. Now MS thinks they can swoop in again for the kill this time.

Cubert.... scary thought. In a lot of countries, NO ONE pays retail for MS software. They build their generic DOSBox from components many generations old, buy CDs of XP and Office for $10 each and they're off. (I've seen it!) MS may not be making any money from it, but still, the fact that people use Windows and MS apps continues the monopoly by default.

May 19, 08 - 08:45 am Comment from: ozy

Stupidity should be painful.

May 19, 08 - 10:00 am Comment from: Spark

The fact is that a bulk of Yahoo investors, led by Carl Icahn, were really pissed that Jerry Yang let the Microsoft deal fall through. Yahoo is a failing company, teetering on a swift slide to oblivion. For those holding Yahoo stock, the MS offer was seen as generous. No sooner did MS walk away than Yang began publicly attempting to woo them back. He knows he overplayed his hand, and is now vulnerable to stockholder revolt and board takeover by Icahn. This is going to be interesting to watch play out.

May 19, 08 - 10:01 am Comment from: Jay-Z

Oh for f*ck's sake. Enough already.

May 19, 08 - 10:48 am Comment from: shen

"Stupidity should be painful."

my god you could hear bush scream from orbit.....

May 19, 08 - 11:27 am Comment from: Jubei

@Cubert / Mr. Reeee

Scary indeed. The laptop initiative has now become an MS breeding ground to further extend their monopoly. These 3rd world developing countries will grow, and guess what their default OS will be? Microsoft. They will be locked in and new CIO/CTO/IT zombies will be hatched, just like all the business in the US.

May 19, 08 - 12:11 pm Comment from: Timbo

Best ZuneTake in a while.

May 19, 08 - 12:24 pm Comment from: LiM

Okay ... so where am I going to get a non-micro non-soft non-gmail free email account?

May 19, 08 - 01:04 pm Comment from: Walter Chillum

Spark is on the right track. What is also important is that now the Yahoo share price is lower and Microsoft can buy the company at a cheaper price. I guess Steve Ballmer is monkeyboy because he can now buy the company for peanuts compared to what it was worth a couple of weeks ago.

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