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Yahoo undecided on Microsoft offer (yawn)

Is Microsoft's acquisition of Yahoo even news at this point?

Dave Rosenberg Co-founder, MuleSource
Dave Rosenberg has more than 15 years of technology and marketing experience that spans from Bell Labs to startup IPOs to open-source and cloud software companies. He is CEO and founder of Nodeable, co-founder of MuleSoft, and managing director for Hardy Way. He is an adviser to DataStax, IT Database, and Puppet Labs.
Dave Rosenberg

Yahoo CEO Jerry Yang said today that the company is considering "a wide range of potential strategic alternatives," but it's hard to see an equitable ending for both shareholders and employees..

I wonder if Microsoft's attempt to acquire Yahoo will instead sink both companies? They are both working to defeat the Google-verse and one could assume that there is logic and synergy in the acquisition. Yet somehow it doesn't quite make sense. If it did, Yahoo would have said yes right away, or at least gone back with a counter.

A better tactic for Microsoft would have been to pull an Oracle and try to drive down the value of the stock. Instead, the stock has gone up and Microsoft will potentially be forced to do a hostile takeover. This is not a tactic that Microsoft is known for (unlike Oracle) and the ability to quickly integrate and further monetize Yahoo in that scenario seems highly unlikely.

The big questions:

  • If Yahoo is on the ropes, can they recover?
  • If Microsoft is finally admitting that their online strategy is weak, what will they do if the Yahoo acquisition flounders?
  • Who else could Microsoft buy?
  • Who else might buy Yahoo?

Maybe Microsoft should have consulted the Oracle M&A team before launching this campaign.