Microsoft Walks Away from Yahoo Offer || The Mac Observer

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Microsoft Walks Away from Yahoo Offer

Microsoft Walks Away from Yahoo Offer

by , 7:50 AM EDT, May 5th, 2008

Microsoft walked away from the table and withdrew its unsolicited bid for Yahoo over the weekend after attempting to sweeten the pot with a new US$46 billion offer. CEO Steve Ballmer said that his company has no plans to pursue a hostile take over attempt, either.

"Despite our best efforts, including raising our bid by roughly $5 billion, Yahoo has not moved toward accepting our offer," Mr. Ballmer said. "After careful consideration, we believe the economics demanded by Yahoo do not make sense for us, and it is in the best interests of Microsoft stockholders, employees and other stakeholders to withdraw our proposal."

Yahoo Chairman, Roy Bostock, responded "From the beginning of this process, our independent board and our management have been steadfast in our belief that Microsoft's offer undervalued the company and we are pleased that so many of our shareholders joined us in expressing that view."

Microsoft presented Yahoo with a $44.6 billion unsolicited buyout offer in February after the Internet search and advertising company reported disappointing earnings. Yahoo rejected the offer and continued to do so even after Mr. Ballmer presented the company with an ultimatum that threatened a hostile take over attempt.

The withdrawal leaves Yahoo open to pursue its own goals in the Internet advertising space. The company could consider a closer alliance with rival Google -- a move the company has already experimented with -- or look at deals with other Internet-related companies like Time Warner's AOL.

The Redmond-based software giant didn't walk away from the deal without letting Yahoo know how it felt. "By failing to reach an agreement with us, you and your stockholders have left significant value on the table," Mr. Ballmer said.

He added "We will move forward and will continue to innovate and grow our business at Microsoft with the talented team we have in place and potentially through strategic transactions with other business partners."

Observer Comments

Show: Subjects Only | Full Comments

Close Name:geoduck Posts: 1922 Joined: 30 Dec 2003
Mon May 05, 2008 9:13 am Subject:

I was really hoping the headline would read "Balmer Punks Out".

Seriously though, this makes him look very weak and waffling and that last comment about value left on the table just sounds petty. I expect a huge increase in calls for his resignation.

Reply | Quote

Close Name:Intruder - TMO Mac Specialist Posts: 3149 Joined: 07 Jul 2004
Mon May 05, 2008 9:52 am Subject:

If Ballmer leaves,will there be any of the original founders of MS left with the company?

Not that it matters, just curious.

EDIT: Although I guess, technically, he wasn't one of the original founders,since he joined the company in 1980.

Reply | Quote

Close Name:Photodan - TMO Staff Posts: 3112 Joined: 11 Jun 2001
Mon May 05, 2008 4:29 pm Subject:

To me, this is further evidence that Microsoft is a company lost within its own walls. It is doing a miserable job maintaining its core technologies and now it wants to expand further?

Get your house in order, THEN expand.

-Dan

Reply | Quote

Close Name:geoduck Posts: 1922 Joined: 30 Dec 2003
Mon May 05, 2008 5:45 pm Subject:

M$ has a history of realizing too late what the 'next big thing' is and then trying to buy their way into the new market. IMO M$ doesn't have any good ideas. They just have deep pockets and watch which way the wind is blowing.

Reply | Quote

Close Name:macinnerd Posts: 1748 Joined: 15 Jun 2005
Tue May 06, 2008 7:34 am Subject:

This isn't the first time MS has tried to buy it's way into a new market or a market that it is weak in. However, I agree with Photodan: today's Microsoft is in no position to attempt something like purchasing Yahoo.

Reply | Quote

Comment on this Article

Guest Posts Visible. Hide Them.
Back to top Page 1 of 1

You cannot edit your comments. You cannot delete your comments.

Comments are currently closed. Please email the author instead.

Recent Headlines - Updated February 13th

Sat, 4:11 PM: MacOS KenDensed - MacOS KenDensed: iPad 3 Frenzy, Big-time Apple & Steve Jobs, G-Man
Fri, 8:10 PM: News - Apple Sues Motorola Mobility in California Over German Case
7:54 PM: Free on iTunes - OnLive Desktop: Windows & Office on Your iPad
7:43 PM: Product News - Apple Rolls Out MacBook Air Configurations for Education
6:35 PM: Just a Peek - Battle Pocket Bulge With The Hint for iPhone
6:01 PM: Rumor - Apple Reportedly Bringing MacBook Air Styling to Pro Line
4:50 PM: Particle Debris - The Hidden Gotchas of Browser Security
3:56 PM: Apple Stock Watch - Analyst: Paying a Dividend Makes Sense for Apple
2:58 PM: Deal Brothers - iMac 27-inch 2.93GHz Intel Quad-Core i7 processor: $1,999
2:45 PM: In-Depth Review - Theodolite App for iOS is Breathtaking
12:52 PM: Apple Stock Watch - Mizuho Securities Starts Apple Coverage with $635 Target
11:35 AM: Hot Forum Topic - Forum Poll: Are You Planning on Buying a New iPad?

The Mac Observer Reader Specials

TypeStyler 11 is now in the Mac App Store!! -- Special Introductory Price of $59.95!! -- To Buy From The Mac App Store Click Here Now!! Or buy direct from Strider Software.
Mac RAM Upgrades: MacBook Pro 16GB kits $475, 8GB Kits for $119.99! iMac 16GB RAM Kits (4x 4GB) for $229.99! Mac Pro Memory 32GB Kit for $399.99, 64GB Kit for $889.99! Mac Hard Drives 2TB Seagate SATA II for $249.99! Click Here!
If you're using a Mac, then you've gotta check out Online Poker Mac. This mac poker and online casino mac site actually does the unthinkable, it actually rewards!