However, there is now a bigger challenge for Yahoo! to become profitable for its shareholders. The first hit on Yahoo! would be the drop in its share owing to the failed talks with Microsoft. This could also mean that Microsoft might come back, taking inspiration from Oracle's buyout of BEA Systems, to buy the desperate Yahoo!
The strongman behind the ambitious deal, Steve Ballmer says, “We continue to believe that our proposed acquisition made sense for Microsoft, Yahoo! and the market as a whole. Our goal in pursuing a combination with Yahoo! was to provide greater choice and innovation in the marketplace and create real value for our respective stockholders and employees. Despite our best efforts, including raising our bid by roughly $5 billion, Yahoo! has not moved toward accepting our offer. After careful consideration, we believe the economics demanded by Yahoo! do not make sense for us, and it is in the best interests of Microsoft stockholders, employees and other stakeholders to withdraw our proposal."
Yahoo! camp must be taking a breath of relief after a close shave with a giant like Microsoft. They can now focus on "maximising shareholder value and pursuing strategic opportunities that position Yahoo! for success and leadership in its markets."
"From the beginning of this process, our independent board and our management have been steadfast in our belief that Microsoft's offer undervalued the company, and we are pleased that so many of our shareholders joined us in expressing that view. Yahoo! is profitable, growing and executing well on its strategic plan to capture the large opportunities in the relatively young online advertising market. Our solid results for the first quarter of 2008 and increased full year 2008 operating cash flow outlook reflect the progress the company is making," says Yahoo!.
The chief Yahoo! Jerry Yang adds, "I am incredibly proud of the way our team has come together over the last three months. This process has underscored our unique and valuable strategic position. With the distraction of Microsoft's unsolicited proposal now behind us, we will be able to focus all of our energies on executing the most important transition in our history so that we can maximise our potential to the benefit of our shareholders, employees, partners and users."
So, he thinks Microsoft was a distraction! It is to be seen in the days to come how Yahoo! shares ride the market and also who the company will choose as an ally to not only avoid such distractions in future, but also to go back to its shareholders telling that they are better off without Microsoft. And as far as Microsoft is concerned, this is high time. Linux is emerging as a strong contestant in the desktop market, even the sale of Apple's Mac is picking up at an astonishing rate -- is that because of the failure of Vista? So, while there is Linux to shake the desktop market and OpenOffice.org and Google docs to make holes in its Office Suite market, the company is struggling on the online front. After the disappointing Windows Vista, Yahoo! is another failed effort in the log of Microsoft CEO Steve Ballmer. Does that mean the company needs Bill Gates back, as much as the falling Apple needed Steve Jobs in 1996? |
Microsoft is a falling company. They are reaping the benefits of the ONE OS, which was possible through their competition killing, 98 and then XP. Another one being Office Suite. But if you look around the company has stagnated.
