Report: Microsoft and Yahoo talks are ongoing but unstable
by Stevie Smith - May 21 2009, 15:15
Yahoo CEO Carol Bartz. Image: Yodel Anecdotal/Flickr.
As recently as April, Microsoft and Yahoo were rumoured to be once again getting cosy with a view to the American software giant purchasing Yahoo’s search business to strengthen its market position against Google.
This week, yet more chatter has emerged claiming that, while the two industry titans are approaching an acquisition agreement, Microsoft isn’t making the deal plain sailing for Yahoo.
Coming during the same week comScore figures revealed an increase in Google’s dominance, the Wall Street Journal claims it has been informed that initial “social issues” that contributed to the failure of Microsoft’s multi-billion takeover bid of Yahoo in 2008 have started to resurface.
More pointedly, although not divulging it sources regarding the ongoing talks, WSJ reports that Microsoft CEO Steve Ballmer, “keeps returning to areas [Yahoo] thought the two camps had already agreed on,” which isn’t sitting well with the Internet pioneer.
Microsoft’s revived interest in acquiring Yahoo – or at least purchasing its search advertising business – has come about since Carol Bartz replaced prior Yahoo CEO Jerry Yang at the beginning of 2009 and revealed a willingness to return to the negotiating table.
“The fact of the matter is, these two guys [Microsoft and Yahoo] should somehow figure out how to get together and create more competition for this guy [Google],” commented Ballmer to WSJ when Bartz took up Yahoo’s reins in January.
“And I’m hoping perhaps that that’s a reasonable conversation to have with new management at Yahoo as Carol comes onboard,” he added.
An initial purchase bid of $47 billion USD put forth by Microsoft in 2008 was repeatedly snubbed by Yang, who believed it to be well below Yahoo’s true value – a stubborn position that angered shareholders and ultimately led to his removal as CEO.
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