12 February 2008
Yahoo! have rejected Microsoft's $44.6bn purchase offer, the Redmond-based software giant has reiterated that it "reserves the right to pursue all necessary steps to ensure that Yahoo!'s shareholders are provided with the opportunity to realise the value inherent in our proposal."
In a recently released statement, Microsoft calls Yahoo!'s rejection "unfortunate":
It is unfortunate that Yahoo! has not embraced our full and fair proposal to combine our companies,based on conversations with stakeholders of both companies, we are confident that moving forward promptly to consummate a transaction is in the best interests of all parties.
In other words, Ballmer and company will continue its talks with Yahoo! and will likely increase its bid. It’s likely Yahoo! rejected the initial offer in a shameless effort to push the price tag higher.
It has been suggested that A Microsoft-Yahoo! combination will create a more effective company that would provide greater value and service to its customers. Furthermore, the combination will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising.
With Google as the number one competitor, we question how compelling this number two will really be. Google controls about 60% of the worldwide search market. Microhoo! would control about half that. But one thing's just about certain. Microhoo! will happen, sooner rather than later.
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