It seems that the battle between Microsoft and Yahoo will eventually turn to an Armageddon pretty soon, given the highs and lows, on and offs related to their
deal. The devil in both the red and blue trying desperately to have them lock horns until one of them succumbs to pressure; and we know that Yahoo is one being pushed further into the defence. The stocks have taken a further slump closing in at $20 per share ($20.96 to be precise) and the company’s cash value fumbling; making it all sweeter for Microsoft before it finally makes a gulp at Yahoo.
Microsoft to initiate the pressure once again at Yahoo has taken it up at approaching various media companies; something that would eventually force Yahoo to buckle under pressure from the steps taken by Microsoft, that from its shareholders and the fear of loosing up Google. And how can one forget the exodus of top execs from Yahoo’s armory?
That’s just the part that had been made public there have been news that certain parts of the deal went off due to the bankers; who weren’t present in one of the meetings and that lead to breakdown As the Wall Street Journal adds:
Early in the discussion, Messrs. Bostock and Ballmer lamented the bankers’ influence on the negotiations, with Mr. Ballmer concluding that bankers had “screwed everything up.�
The bankers appointed by both Microsoft and Yahoo were Morgan Stanley (Microsoft) and Golman Sachs (Yahoo). However there is also some leak at blaming the bankers and it says that Yahoo might just have hired Sachs to cast over the fee agreement that would eventually lead to killing the deal.
The investors at the other hand are desperately trying to persuade Microsoft to come up with an offer that is alluring enough and in turn promising more cooperation from Yahoo. Microsoft, seeing the present slump at Yahoo’s share rates is in no hurry anymore as it can enjoy the feast at Yahoo with a dropped price.
All one can do is blame Yahoo for its sore headedness over the entire issue, it could have capitalized on the better bid by Microsoft at buying 16% of its shares at $34 each. And this is one reason why CEO Jerry Yang and the board are continually bombarded with force from investors to make up quick with Microsoft.
But will this change of mind solve the problem for Yahoo? I doubt for the moment it drops in favor of Microsoft it would have to pay in $250 million fee to Google for annihilating the deal with them.
There is a cloud over Yahoo and unluckily there is no silver in it; given the present scenario I don’t think it will be fit to use the cliched expression; ‘all’s well that ends well.’ For I personally think that the present scene takes Yahoo into a well; that it has dug up itself. Yahoo has nonetheless



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