Microsoft: 'No interest' in Yahoo! merger

It seems like only yesterday that the tech world was buzzing with talk about a proposed acquisition of the Internet search giant Yahoo, by software giant Microsoft. Maybe it wasn't actually yesterday (more like February) but even though talks about a transaction valued at nearly $50 billion have collapsed long ago, rumors continue to come up about continued talks. In an effort to perhaps silence some of those rumors, Microsoft issued a statement today on their website about it.

"Our position hasn't changed. Microsoft has no interest in acquiring Yahoo!; there are no discussions between the companies," the company said in a statement.

Yahoo CEO Jerry Yang, had publicly opposed the acquisition even though he was heavily pressured by Yahoo shareholders who were led by American billionaire financier Carl Icahn. On May 13, 2008 Carl Icahn purchased as many as 50 million shares of Yahoo in an attempt to lead a the fight to remove Yang and other directors at Yahoo in response to what he considered "irrational" actions in rejecting Microsoft's takeover bid. His fight was unsuccessful.

Since the launch of the Microsoft bid in February, Yahoo shares have fallen 61 percent.

However, today Microsoft CEO Steve Balmer said, while speaking at a Gartner conference in Orlando, Florida that "It's clear that Yahoo did not want to sell the company. It didn't want to sell when we offered $33 [per share]. Perhaps there will be continuing opportunities to talk about a search partnership in the future."

At the same conference, Balmer also outlined some of his thoughts on waiting to upgrade to Windows 7, saying "If people want to wait they really can."

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13 Comments

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I blame the last month's significant drop on the overall shape of our economy, and not due to Microsoft pulling out. Their average share price was pretty constant from July to the end of September when everything started crashing.

Yahoo should have taken the deal when they had the chance, for better or worse; they're largely irrelevant these days compared to MS and Google.

There's no even going back. When Jerry Yang turned down the Microsoft buyout 2 times, a lot of Yahoo's key engineers and employees have moved on to greener pastures.

He is obviously talking about when the final offer talks broke down, the end.

Wonder if it would of been bad move in the current climate. They never would of seen it coming but interesting effect if MS splurged so much.

HalcyonX12 said,
Oh yeah, just like how when they talk about "next gen" consoles, they only mean "high definition next gen."

By that, I assume you're talking about the Wii? The Wii isn't next gen. It's basically a suped up gamecube with a very good new control method. Nothing about the console itself is next gen.

Don't get me wrong, the control method is alot of fun at parties or when you've got a few friends round, but it's not a serious gaming platform, and certainly not a next-gen console. IMO.

"Our position hasn’t changed. Microsoft has no interest in acquiring Yahoo!"

That's not really the position they started with, so it has changed, and that was because Yahoo! had no interest in a merger with Microsoft. But they really know how to turn a phrase, don't they?

Do you really know how things went?

Yahoo asked for more $ per share, but after that Microsoft didn't want to, so they just left the idea of the merger. So in fact they have no interest now... and have the same position when Yahoo asked for more shares.

And btw, they don't need to turn the phrase, just FYI.

Glendi said,
Do you really know how things went?

Yahoo asked for more $ per share, but after that Microsoft didn't want to, so they just left the idea of the merger. So in fact they have no interest now... and have the same position when Yahoo asked for more shares.

And btw, they don't need to turn the phrase, just FYI.

That response seems a bit defensive.