Wednesday, 21 May 2008

Microsoft Proposes to Yahoo-- This Time for Search

Talk about not taking no for an answer. Microsoft has, yet again, set another proposal on Yahoo’s table one that goes further than a partnership but stops short of a complete buy-out...

Talk about not taking no for an answer.

Microsoft has, yet again, set another proposal on Yahoo’s table one that goes further than a partnership but stops short of a complete buy-out.

A statement released by the Redmond, Washington based computer goliath indicates that it has set its sights on the Internet giant’s search business.

“In light of developments since the withdrawal of the Microsoft proposal to acquire Yahoo! Inc., Microsoft announced that it is continuing to explore and pursue its alternatives to improve and expand its online services and advertising business…” reads part of the statement.

Should the deal follow through, Yahoo will reportedly sell its Asia assets that include stakes in Yahoo Japan and China’s Alibaba Group whilst Microsoft will acquire a large portion of what remains of the company.

Such a strategic alliance aims to take on Google whose ubiquitous search engine today hails supreme in the online search and advertising front.

Both companies have not divulged how much the new bid is priced at.

Analysts say this scenario would not have come about if not for the proxy bid initiated by Carl Ichan last week.

After months of pursuing Yahoo for a complete buy-out Microsoft stepped down earlier this month and withdrew its sweetened USD 47.5 billion bid.

This instigated multi-millionaire Ichan-- who has a reputation for compelling companies to change their investment strategies--to step up and announce that he will launch a proxy battle, “ hand picking” a new set of board of directors at Yahoo to take control for the express purpose of trying to force a sale of the company to Microsoft

Yahoo lashed out at Ichan’s proposal stating that its current ten-member board remains the best and most qualified group to maximize value for all stockholders.