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NEWS > TECHNOLOGY > MICROSOFT AND YAHOO HEAT THINGS UP AGAIN

MICROSOFT AND YAHOO HEAT THINGS UP AGAIN

November 30 2008

Redmond, WA – After a long courting and a series of rejections and counter rejections, it appears as though Microsoft and Yahoo may come together after all. Following the stepping down of CEO Jerry Yang and a precipitous decline in stock value, the door has once again opened and Microsoft has reportedly stepped in with a 20 billion dollar offer for Yahoo’s web search portal. Many analysts are expecting the tow to finally seal the deal.

“It’s been a long time in coming and there’s been a whole lot of talk and drama. It was getting a little old but it looks like the two companies are finally going to get it together,” said Scrape TV technology analyst Ken Kevins. “There’s no doubt that the two will be a good match and it just took a lot of time and a lot of silliness before they were both able to realize that. Sometimes things don’t go exactly the way they are planned, but you hope that they still end up happy. It’s good that they have sat down and worked out their problems. It would be a shame to let this just disappear into the ether like so many other relationships.”

After a rejection by the Yahoo board over the summer that would have put the purchase at 33 dollars a share, or 47.5 billion dollars, Microsoft rejected flatly the option of renewing talks to rekindle the relationship. Since then, co-founder Yang has been ousted and investor Carl Icahn has cemented himself as a member of the board. The new developments have gone a long way to helping Microsoft cozy up once again.

“Sometimes all it takes is time and a little dash of circumstance. The best of relationships have a rocky road, some from the beginning and some all the way through,” continued Kevins. “All you can hope is that the two sides have matured to the point where they can build a happy and healthy relationship, despite the differences and difficulties they have had getting to this point.”

Google, the current search giant obviously has the most to lose with a relationship between the two companies, but it is friendly parties and investors that have expressed the gravest concerns about the relationship between the two.  

“Many are still unconvinced that it will even go through, but if it does, many of them will not be very happy. They are seriously concerned that this is a relationship doomed to failure,” said Scrape TV business analyst Ken Green. “Both sides used each other during the early part of this relationship but it seemed only one was serious about making it work. Microsoft is the old dog and not really looking to play games. Yahoo, whether because of their youth or just a general flakiness on their part, seemed really scatterbrained when it came to having a serious discussion. Perhaps now that things have changed Yahoo has a new level of humility and maturity, but many are concerned that if they actually get together, the silliness will begin again. I just hope if that happens Microsoft doesn’t engage in those kinds of games again. They need to clamp down and move forward with or without Yahoo.”

Microsoft though seems to be moving ahead despite the concerns, hoping that things will sort out as they go.

“Yahoo has a lot of great qualities but there is something lacking there; a maturity; a greater sense of the world around them; character. Despite everything good they have and have done, that undoes them and may taint the entire relationship,” continued Green. “For both their sakes you have to hope that Yahoo has grown up, and that Microsoft is seeing the world with open eyes. Otherwise there are going to be a lot more bumps along the way.”  

Martin Philton, Technology Correspondent

NEWS > TECHNOLOGY > MICROSOFT AND YAHOO HEAT THINGS UP AGAIN

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