Following his disappointments with Google walking away from their search ad deal, Yahoo’s Jerry Yang said at the ongoing Web 2.0 Summit that the best thing to do for Microsoft is to buy Yahoo now. Mr. Yang also said that it doesn’t matter for how much Microsoft wants to buy Yahoo for as long as it is for the right price, Yahoo would most probably accept the offer.
But that is if Microsoft would make another offer after saying before that it is no longer interested in buying Yahoo.
Also during the interview, when asked if they are keen on buying AOL after the failed deal with Google, Mr. Yang just laughed off the question and did not give any direct answer.
Although Yang was disappointed with Google’s decision to cancel the deal, he however also partly blamed the government for getting in the way of the implementation of the deal. In BBC report Mr. Yang said:
“I really thought the government in this case does not understand our industry. They have a market definition that I think is too narrow and I think things like this tend to have unintended consequences for our entire industry.
So, if Microsoft will not make an offer, what do you think will Yahoo do next? Proceed in buying AOL? Or convince one of its board member, Carl Icahnn to renegotiate a deal with Microsoft.
The latter has a stronger possibility than the latter.
Why would MS buy a sinking ship?
Better for microsoft to buy Yahoo to compet in the search market
With downtrend like this I am not sure how long Yahoo will he able to compete with anyone..
It’s business, there is no pride here. Although Microsoft has been rejected, they will still buy Yahoo! if there is a sufficiant financial or strategic gain in the whole deal. If anything else they will come closer to Google. Technically Tthe Gov should step in and prevent such an acquisition as well.
Yahoo’s main empire is only on email services. Besides MS Live is getting popular with their latest features. So I think MS won’t buy Yahoo since Live is getting stronger and might surpass yahoo in the future. But for now, Yahoo is much better than Live in terms of search engine services.
Yahoo turned MS down at $33 a share.
Yahoo shares last traded at $13.96 a share.
Mr. Yang’s ego has cost a lot of people a lot of money…
The only reason they will combine is to have a hope at competing with Google in search. Yahoo has never hailed itself as search engine but as an information site with search tacked on. However had their search been more popular they probably would have claimed it then. Now Microsoft and Yahoo have combine on search Yahoo is going to focus on content areas and advertising perhaps. It will be interesting to see what the coming year brings for them all in search and in content.