The Mac Observer

Skip navigational links

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-Yahoo Talks Back On

Microsoft-Yahoo Talks Back On

by , 8:05 AM EDT, May 19th, 2008

Microsoft is back at the negotiating table with Yahoo, but this time it is looking to strike a deal that doesn't involve buying all of the Internet search and advertising company. The new proposal apparently would see Yahoo selling off part of the company instead of succumbing to a full buyout.

Microsoft said in a statement that it is "considering and has raised with Yahoo an alternative that would involve a transaction with Yahoo but not an acquisition of all of Yahoo."

Yahoo issued a response that said in part "Yahoo has confirmed with Microsoft that it is not interested in pursuing an acquisition of all of Yahoo at this time. Yahoo and its Board of Directors continue to consider a number of value maximizing strategic alternatives for Yahoo, and we remain open to pursuing any transaction which is in the best interest of our stockholders," indicating that the company is still open to negotiating with Microsoft.

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 two companies did agree to negotiate, but Microsoft eventually dropped its offer after deciding the deal no longer made fiscal sense.

Billionaire investor Carl Icahn, however, wasn't happy with the outcome and said Yahoo "completely botched" the deal. He has since launched his own proxy battle to oust Yahoo's board of directors and push the two companies back to the negotiating table.

There is no word on whether or not Mr. Icahn's actions were an incentive for both companies to open new talks, but Microsoft did hint that it is willing to listen to what he has to say -- and that a full buyout isn't necessarily off the table. "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," the company said.

Recent Headlines - Updated July 29th

Tue,9:55 AM
Apple Drops Samsung Patent Appeal, Ends Injunction Push
8:46 AM
Retina MacBook Pro gets Faster Processors, More RAM
Mon,10:20 PM
Beats Music Adds More User Controls to iOS App, Including ‘Tune Your Taste’
9:48 PM
Facebook Forces iPhone Users To Separate Messaging App
7:56 PM
Blockchain.info Brings Bitcoin Wallet App Back to App Store
6:56 PM
‘Another One Bites The Dust’ Played Using Disk Drives
5:57 PM
Lord & Taylor, Hudson’s Bay Company Deploy iBeacons in Stores
5:18 PM
The Mac Mastery Training Bundle: $29
4:39 PM
Hilton to Turn Your iPhone into Your Hotel Room Key
3:55 PM
OS X Yosemite: What Does That Little Green Button do NOW?
2:02 PM
TMO Daily Observations: 2014-07-28
10:55 AM
Apple Ready to Buy Swell Talk Show App in $30M Deal
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!