Skip to main content

The Tug of War Begins Again: Microsoft and Yahoo Having a Fresh Round of Talks

Two weeks after saying no to the Yahoo demands, Microsoft is back on the negotiation table with a new deal

The world’s biggest software giant and the world’s second biggest Internet search company are back on the negotiation table.

A fortnight ago, Microsoft had backed out of the offer made to Yahoo! saying that it had given up the idea of this acquisition.

The facts that Jerry Yang, Yahoo! CEO, had asked Microsoft to up its initial offer of $ 47.5 million and that the share prices of the search company fell by 15% consequently are said to have led to Microsoft’s saying a firm’ No’.

Two weeks down the line, they are back together, discussing how to work out a deal that would be mutually beneficial.

However, this time round, Microsoft is not seeking complete control over Yahoo!, while still reserving the right to a complete buy-out at a later date.

If this deal goes through successfully, Yahoo! would be able to retain some of its stake and therefore its control over the company.

Although the deal has changed a little in favour of Yahoo!, the big shots at the company are still ambiguous about what decision to take.

At the end of it, everybody wants a decision that would be the most beneficial to the company’s shareholders.

As a fresh round of number crunching and negotiating begins, industry experts say that it is just a matter of time before Microsoft takes over, whether partially or completely.

Until then, Yahoo’s biggest rival Google will keep reaping the rewards of this tug of war!

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.