Linked by Thom Holwerda on Sat 9th Feb 2008 19:10 UTC
Microsoft Yahoo Inc's board believes Microsoft Corp's unsolicited bid of USD 44.6 billion to acquire Yahoo 'massively undervalues' the company and directors are set to reject the offer, the Wall Street Journal reported on Saturday, citing an unnamed source. Microsoft's USD 31 per share offer fails to take account of the risks that a merger between the world's largest software maker and Yahoo would be rejected by regulators, the paper reported, citing 'a person familiar with the situation'. A spokeswoman for Yahoo, a diversified Internet media company, declined to comment on the proceedings of the company's board of directors.
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Yahoo still has a chance
by alucinor on Sat 9th Feb 2008 23:20 UTC
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Things were looking grim for Yahoo, but their new strategy hasn't even played out yet. They've got a renewed focus on search (their engine had been outsourced to Google previously), and Yahoo's search infrastructure is actually based on open source Hadoop technology.

I always thought Yahoo had a better grasp on the social aspect of the Internet, while Google was better at the technological side, if you look at their acquisition history.

Yahoo also has a chance to do something great with Zimbra if they play their cards right. The MS deal could be as much about fear of a viable open source Exchange competitor (as Novell already canned Hula) as about gaining better brand recognition and marketshare.

Besides, since when has MS ever bought marketshare? Talk about showing weakness to the MS faithful. And talk about taking a big crap on MSN and its .NET stack. For all their faults, that company has ever been one to succeed as a lone wolf. A rabid wolf, but an independent one.

MS would do well to eject Ballmer, who has major Google-envy, and focus on .NET -- probably the best thing to have ever come out of that company.

Why not take that 40 billion and fork it out as bounties to developers to enhance a new Windows kernel and .NET runtime? That would be so killer. Their bounties for significant contributions could be huge. And if they released the specs as open and free but kept the implementations for themselves, they would gain goodwill from the majority of the contributors, I would imagine, who would go home with nice chunks of change anyways.

Edited 2008-02-09 23:37 UTC

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