Microsoft made the offer to purchase a few months back and was met with negativity from Yahoo!. Microsoft has since stated on the record that they would pursue hostile methods to acquire Yahoo! if no agreement is reached by the 26th April 2008. That date just passed us and Yahoo! is still shying away from a deal of the giants.

Does this now mean that Microsoft will in fact get its hands dirty by pursuing a a hostile take-over? Options currently include increasing the $31 per share offer, decreasing the offer based on the 1st Quarter results from Yahoo!, going hostile or dropping the matter all together!

Yahoo! has launched a test that runs Google Ads along side its search engine results. Does this mean that Google will pay for Yahoo! to stay afloat?

Since the announcement, Yahoo! products division has been in hyper-drive rolling out new features and products in the hope to further cement its notion that Yahoo! is worth three times what Microsoft has offered. They have launched video playback on Flikr, launched its mobile based social network called OneConnect and has relaunched its social news video site called Yahoo! Buzz.

This is definitely going to be exciting to follow, as Microsoft will once again come out the bad guy in this and Google will play the hero to Yahoo! once again establishing the good guy image that Google so proudly boasts.

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6 Opinions

  1. Chris M // 28 April 2008 at 18:59

    This is definitely a story that I'm going to follow really closely. If Microsoft takes control over Yahoo! I foresee some big movements on the web..

  2. HoTsTePPa // 28 April 2008 at 19:02

    Very true. Microsoft is of course trying to own the search technology, advertising and research divisions of Yahoo! Combined research facilities will be result in some amazing new products and it WILL give Google a run for its money.

  3. Chris M // 28 April 2008 at 19:45

    Totally agree, Microsoft are undoubtedly a powerful company regardless of what anyone says. With a piece of search marketing and the likes, it will be interesting to watch what they start rolling out. I'm not to sure on the facts, but Yahoo! is a massive company, Google can't be that much far ahead of them as things stand now?

  4. HoTsTePPa // 28 April 2008 at 20:04

    yeah, Google and Yahoo! compete in slightly different spaces actually. Google is more text ads while Yahoo! is more visual ads.

    Rumours of the two of them partnering has been rife since MSN made their offer and that combo too can be revolutionary.

    And once again, the biggest asset that Yahoo! has to offer is their R&D division and the combination of this division with ANY major funding will boost the company to new heights that will certainly revolutionize things as we know it!

  5. Christopher J Combrink // 29 April 2008 at 10:16

    Hmm...

    At the end of the day, there's going to be one super-power. ATM, it's Microsoft.

    Microsoft are in bed with most of the major corporate distrubutors - DELL, COMPAQ, bla bla bla.. they are the industry standard.

    Billions have been pumped into OS' like Ubuntu in SA, yet, only 25% of SA's browsing is Firefox. Let's not even get into Linux vs MS OS :'(

    My point is that Yahoo! will sell when the time's right. Everyone has their price. If anyone is in the position to do it, it would be MS. With Billy Gates having retired now, it seems that the company's investing in some more aggressive approaches to the way it does business. One thing's forsure - their OS is still buggy as hell...

  6. HoTsTePPa // 29 April 2008 at 10:25

    MS definitely has the financial capability to get aggressive. But there are companies that will make sure that MS comes out the bad guy. In this case its Google. After all, the entire idea behind MS owning Yahoo! is solely to challenge Google in the online advertising space which it has been losing hopelessly in.

    I am very positive about a collaboration between Google and Yahoo! and I see this partnership becoming pretty formidable. Google certainly doesn't need Yahoo! but who would say no to a research and development team that is so well established that they were the first to bring us mobile based email.

    With the trends moving towards mobile, it is no surprise that Google would want to play Mr Nice Guy again.