Microsoft backs off from Yahoo hostile takeover

After a turning battle of withdrawal Microsoft has backed off of the hostile takeover that they planned for Yahoo. Siting that it would not be in the best interest for them at this time. They had increased their bid for Yahoo to be $41.5 billion, or $37 per share. What seems to the be issue is that Yahoo executives wanted $38 per share in their last Wednesday’s meeting.

Microsoft being in the third seat of internet search engine companies wanted to chip away at the number one spot (Google). Competition is the essence of business. But Microsoft felt it wasn’t a good business move at this time to takeover Yahoo because Yahoo with their negotiations with Google in an alliance would cede too much power to Google in the lucrative search advertising market.

What I think….. One can only wait and see what is to come next over this year as to whether Microsoft will step up to the plate again and try their hand at bat. I personally hope that whatever the outcome Yahoo executives will use their heads in their decisions. If a merger is to be sanctioned by them goodness let it be with Google.

Microsoft vs Yahoo

Check out this video from February for some background information.

Loaded: Google versus Microsoft

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