With Yahoo deal's collapse, stymied Microsoft must find new online strategy

News Type: Event — Seeded on Mon May 5, 2008 6:26 AM EDT

Article Source: The Seattle Times

technology, microsoft, seattle-times, yahoo, steve-ballmer, windows-live, msft, jerry-yang, live-search, benjamin-romano-washington-state, yahoo-bid

Seeded by Tedd Riggs

With its three-month pursuit of Yahoo at an end, Microsoft is back where it started: far behind Google, the undisputed online-advertising leader.

For several years, Microsoft has been striving for a bigger share of the billions of advertising dollars migrating online. Buying Yahoo would have gone a long way to making that happen, the company reasoned.

Now, after the companies could not agree on a purchase price, Microsoft has to chart a different course.

Chief Executive Steve Ballmer, in an e-mail to employees Saturday explaining his decision to withdraw the offer to buy Yahoo, said Microsoft has a strategy in place.

"Although the acquisition of Yahoo would have accelerated our ability to deliver on our strategy in advertising and online services, I remain confident that we can achieve our goals without Yahoo," Ballmer wrote.

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Tedd Riggs's Column, All of Newsvine
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Regions: Seattle/Tacoma

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{"commentId":1766606,"authorDomain":"TeddRi"}

Tedd Riggs

Well the bidding war is over, maybe. From the looks on Steve Ballmer's face in photo #1, he doesn't look to happy about it.
I wonder what plan B will be however ?

{"commentId":1766606,"threadId":"259724","contentId":"1469574","authorDomain":"TeddRi"}

2 votes

#1 - Mon May 5, 2008 6:26 AM EDT

{"commentId":1766611,"authorDomain":"blai"}

BlaiseP

This is only the beginning. Now Microsoft will enter upon a strategy of a hostile takeover. The only way Yahoo will prop up its stock price is a massive buyback of its own stock. I will be watching this morning's market closely, not sure where the smart money will move on this deal, but a lot of vultures are circling at this moment.

{"commentId":1766611,"threadId":"259724","contentId":"1469574","authorDomain":"blai"}

2 votes

#2 - Mon May 5, 2008 6:37 AM EDT

{"commentId":1766647,"authorDomain":"TeddRi"}

Tedd Riggs

I have a Google News Alert set on this one as I am sure you are right on the vultures circling this one. Hard to say what the best move is, its almost a defensive move against Google to acquire Yahoo.

{"commentId":1766647,"threadId":"259724","contentId":"1469574","authorDomain":"TeddRi"}

2 votes

#2.1 - Mon May 5, 2008 7:09 AM EDT

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Blame plentiful in failed Microsoft-Yahoo deal	Associated Press	Mon May 5	0
Slim chance, but Microsoft could still get Yahoo	msnbc.com	Tue May 6	0
ABC News: Microsoft and Yahoo: Now What?	ABC News	Mon May 5	0
A step back for Microsoft	International Herald Tribune	Tue May 6	1
Yahoo facing shareholder fireworks at July 3 annual meeting	Associated Press	Mon May 5	0

TEDD RIGGS

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With Yahoo deal's collapse, stymied Microsoft must find new online strategy

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