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04-02-08





More Microsoft Money For Yahoo? Probably Not
By David A. Utter

Yahoo's efforts to convince the world, and its suitor from Redmond, the company is worth more than Microsoft's proposal hasn't brought in a viable competing bid.

Consolidation happens in the business world. Companies grow, compete, and buy out the ones who can't keep pace. Electronics, soft drinks, automobiles, pick a sector, someone has knifed someone right in the ledger, watched the red ink bleed out, and cleaned up for the cost of a tissue or two. It happens.

It's happening in the Internet services arena, where Google's search dominance and Microsoft's money-printing Office and Windows franchises have more perceived value than Yahoo, the web destination with the heaviest traffic. Microsoft watched Yahoo tank down under $19 a share, and pounced.

Only a clever bit of bylaw rewriting bought Yahoo a few more months until Jerry Yang and Yahoo's board have to decide whether their fiduciary duty to shareholders means giving in gracefully to Microsoft, or engaging in a running proxy fight for control of the board.


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