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IT Blogwatch

A Daily Digest of IT Blogs from Richi Jennings

Yahoo vs. Microsoft... FIGHT! (and alt.lost)

TAGS:M&A, Microsoft, Yahoo
IT TOPICS:Government & Regulation, Internet, Personal Technology, Software, Windows & Microsoft

Am not. Are too. Is IT Blogwatch: in which Yahoo and Microsoft bicker like spoiled children. Not to mention alternative opening titles for Lost...

Linda Rosencrance is in rude health:

Yahoo Inc.'s board of directors told Microsoft Corp. that it would consider the software company's unsolicited takeover bid, but only if it makes a big higher than the initial $44.6 billion offer. In a letter today, Yahoo also told Microsoft CEO Steve Ballmer that it didn't take kindly to ultimatums or threats of a hostile takeover. Microsoft declined to comment on Yahoo's letter ... Ballmer gave Yahoo three weeks to agree to its takeover bid, which now stands at about $42 billion, or face a proxy fight ... Yahoo told Microsoft that the threat to launch a hostile takeover was "counterproductive and inconsistent with your stated objective of a friendly transaction" ... [but] said it was not opposed to a Microsoft takeover if it was in the best interests of its stockholders, suggesting that Yahoo wants Microsoft to increase its offer. more

Doug Aamoth sounds bored:

I’ll keep this as short as possible. Microsoft sent a letter to Yahoo! basically saying “We’ve repeatedly tried to buy your company. You have three weeks to sell. If you don’t, we’ll just buy a bunch of your stock.” Yahoo! sent a letter back to Microsoft basically saying “Your offer is weak, we’re not selling even though your initial offer was 62% above our market value. Make a decent offer and we’ll sell. Please don’t buy our stock.” Yahoo! should just sell. It’ll get more money than if Microsoft buys out a bunch of its stock and replaces its board members. It’s going to happen either way. Get it over with and then we can be done with this and continue to use Google to search for stuff. more

Anders Bylund concludes:

Tensions are running high in the war of words between Microsoft and Yahoo!. Microsoft CEO Steve Ballmer sent a sharply worded letter to Chief Yahoo Jerry Yang over the weekend ... but Jerry's gang remains unconvinced ... Both sides are inching close to outright name-calling now. How will this saga end? ... I think it's an uphill battle already, and one best abandoned altogether. But if Ballmer truly wants Yahoo as badly as he claims, he'd be better off opening the wallet a little wider. It doesn't have to be more cash, if he's concerned about taking on too much debt. Sure, Microsoft's own shareholders might not appreciate the dilutionary effects of a few hundred million extra shares handed out to Yahoo owners, but it could be a fairly cheap way out of a sticky situation. more

Good Morning, John Murrell:

All this time, I’ve been watching Microsoft’s bid to take over Yahoo like it was a war movie, strategies and salvos plotted out in darkened rooms before banks of monitors. But maybe what we’re seeing is one of those romantic comedies where the couple spends the first hour and half getting off to a cute, contentious start before undergoing personal growth and falling into each other’s arms ... From here, the script could go a couple of ways. Microsoft could change its tack and dangle enough baubles to let Yahoo accede with something that looks like dignity, in which case, we may be watching a period drama about a pathetic protagonist trapped in a secure but loveless marriage. Or Microsoft could continue on its course, which would be a feast for fans of the stalker/slasher genre. Send the kids out of the room for that one. more

Henry Blodget translates, saying it makes Microsoft look dishonest:

Key points: Our business is in line with our previous forecasts (contrary to Microsoft's assertions) ... We are not opposed to selling to Microsoft at a higher price ... Contrary to Microsoft's assertions, our new three-year financial plan "has received positive feedback from our stockholders" ... You mischaracterized our discussions in your letter ... We have asked you for anti-trust information that you have refused to provide ... We're happy to sell to you, but we're not going to allow you to steal the company. more

Greg Sterling:

This is very much a public game of "he said, she said" and "CYA." Yahoo must be seen to be putting the interests of shareholders ahead of the emotions or personal interests of individual board members or executives -- or they are vulnerable to litigation, which has already commenced. But there are many fair points in Yahoo's letter about its global reach and brand strength and its various initiatives. It also appears to say that Q1 will be solid for the company ... These dueling quasi-legal missives may not reflect what's going on actually behind the scenes with the two companies but it appears to show increasing entrenchment and inflexibility on the surface. more

And finally...

Rejected opening titles for TV's "Lost"

Buffer overflow:

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Richi Jennings is an independent analyst/adviser/consultant, specializing in blogging, email, and spam. A 20 year, cross-functional IT veteran, he is also an analyst at Ferris Research. You too can pretend to be Richi's friend on Facebook, or just use boring old email: blogwatch@richi.co.uk.

Previously in IT Blogwatch: