Yahoo! rejects Microsoft’s takeover bid

February 16th, 2008

At least for now, it seems, we’ll be spared from seeing these horrible images when we visit Yahoo. But how long until Microsoft forces a hostile takeover?For now, it seems, we’ll be spared seeing the terrible, bone-chilling image of “Yahoo! Live” or “MSN Yahoo!” logos gracing the front page of Yahoo!, at least for a while. Last week Yahoo! rejected Microsoft’s unsolicited bid to takeover the internet portal pioneer.

From the article:

“The proposal is not in the best interests of Yahoo! and our stockholders,” Chief Executive Jerry Yang wrote in an e-mail to employees Monday. “We believe Microsoft’s proposal substantially undervalues Yahoo.”

But Microsoft is not one known to back down, shrug their shoulders and walk away. Now that they have it in their collective minds that they want Yahoo! they will not stop until they have it. So why do they want Yahoo! so bad? Google. Yes, Google. They want all other competition out of the way so they can compete head-to-head with Google with the goal of eventually either taking Google down, or aquiring it. So why didn’t they just go after Google in the first place? Arguably, they have the cash. Microsoft could buy a small Latin American country if they wanted to. So I’m kind of perplexed as to why they’re after Yahoo! to get to Google. This is uncharacteristic of Microsoft. They don’t want competition. They want dominance, total and complete.

Personally, I think they’d be better served by strengthening and improving their own product(s): MSN and Live Search. They already offer a lot of the same services as Yahoo! does: Search, chat, photo sharing, groups, mail, and more. If they’d sped the billions they intend to spend on acquiring Yahoo! on improving MSN/Live’s services, I think they’d find it would be money better spent.

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