Microsoft’s deadline for Yahoo will come to an end Today (26th April 2008)

Tick, tick one…… tick, tick two….tick, tick three ……and lo the time has come after three months of glitzy war of words between Yahoo and Microsoft that started after Yahoo’s refusal to Microsoft’s bid for buyout.

Today is the last day of the time limit that Microsoft announced for Yahoo three weeks back to accept its takeover bid or get ready for even more unfriendly bid or a choice to Microsoft to discard the offer completely.On the other hand, Yahoo has rejected Microsoft’s offer many times and has been asking for a more suitable value.

Strategic Business

In the current internet scenario Yahoo and Microsoft are not looking competent enough to stay before Google which is taking a lion’s share in online ads and playing the role of a leading player in attaining online ads.Microsoft and Yahoo both are trying their level best to grip the ad market but most of the experts are of the view that it is quite difficult for Yahoo and Microsoft to compete Google separately and only their merger can create a possibility to challenge Google’s authority.

internet scenario

The battle between Microsoft and Yahoo was started in January this year when Microsoft proposed Yahoo a cash and stock offer that valued $31/share or $ 45billion.Because of the decline in Microsoft shares the bid was dropped to $29.64.

Executives of both companies have met to talk about the offer but couldn’t decide the issue. According to Jerry Yang, Yahoo’s CEO, he is not an opponent of Microsoft’s bid but the value they are offering is not suitable.Yahoo has also discussed many joint ventures with News Corp, Time Warner and even with Google and it just wants to compel Microsoft to increase the offer.

The deadline that was announced by Microsoft’s CEO Steve Ballmer will expire today (April 26) and if Yahoo doesn’t recognize this offer today, anything can happen under the following three possibilities.

  • Microsoft can recall the bid but if Microsoft recalls the bid, Microsoft will have to spend continually by attaining other online ad companies.
  • Microsoft increases the temperature and starts a substitute encounter.The company has by now appointed a substitute firm and apparently designated 10 candidates and three substitutes to its own optional board.
  • Microsoft expands the alternative time limit whilst Yahoo attempts to induce its stockholders that a merger with Time Warner or Google is more pleasing.

However it is not clear yet what would be the next step of Microsoft in if it discarded Yahoo. Ballmer considers Yahoo a weapon that he can use against Google’s online ads influence

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