The online battle between Yahoo! and Microsoft seems to be never-ending. On one hand Yahoo! struggles to unearth any possible alternative to being bought by Microsoft Corp. while on the other hand the software giant answers back with a threat to lower its $42.4 billion bid. Insiders revealed news regarding intensified negotiations between Yahoo and Time Warner’s AOL division about an alliance. Yahoo!’s alternative plan involving News Corp has been left aside.Microsoft Chief Executive Steve Ballmer didn’t take the news lightly. Quite on the contrary actually, he reacted by giving Yahoo!’s board a three-week ultimatum inviting them to come to a deal or else Microsoft will change course, cut its bid and start a proxy campaign against Yahoo's board.
Market analysts portrayed Yahoo!’s two obvious solutions; either creating a strategic alliance which will demonstrate its value as an independent corporation or stagger humanity with strong figures in its quarterly results. Microsoft proposal stands at $31 per share valued at $42.2 billion in total, an amount not cherished by Yahoo!'s board which disregarded it stating that it clearly undervalues Yahoo!, thus they seek alternatives.
The deadline falls on April 26, four and two days after Yahoo! and Microsoft reports quarterly results respectively. It wouldn’t come as a surprise if Yahoo! released its first-quarter results earlier than planned in a try to make clear that besides the turmoil they stand in good stead. Unfortunately it is highly probable that Microsoft’s bid constitutes a big distraction element to business the past two months as sales teams, developers and advertising customers wonder what the future holds.
But aren’t we all, though? Any predictions are welcome.
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