Microsoft Backs Away from a Noseless Jerry Yang

In what could be interpreted as Steve Ballmer's strategy for buying out Yahoo at dirt cheap, Microsoft formally withdrew it's bid for the ailing Yahoo, and Yahoo's shares plunged 20 percent as a result.

It was like an arranged marriage that Jerry Yang didn't want to be a part of.  He was not at all attracted to his billionaire suitor, and tried to woo other suitors to make the other jealous.  But alas, Jerry's plan backfired; and after turning down Steve's unsolicited marriage proposals one too many times, he gave up.

This isn't finished yet, though.  Yahoo is out on it's own after Jerry Yang cut off his nose and shot himself in the foot.  They're still trying to make it work with Google; but that could end up being the wedding night from hell with FTC scrutinizing the partnership.  Yahoo's relationship with News Corp. has "cooled", and AOL already outsources its search ads to Google (which would make for a tricky love triangle).  Yahoo may be crawling back to Microsoft in short order, begging to be taken back.  Microsoft will oblige; but the ring will have a much smaller rock on it.

What are your reactions?  Do you think Yahoo can pull itself back up?  Will shareholders all but crucify Jerry Yang?  Will another hero sweep in to save the day?

Comments

[Will]

I think it's a carefully constructed plan by Microsoft. Now, about a year from now, they'll be able to get Yahoo at a much lower price they would have had to pay originally. It's unfortunate that the shares went down because this is just a bluff by Microsoft.

[Kari]

I agree Will. This is not the sort of deal where a company like Microsoft would just throw up its hands in frustration and walk away. Yahoo sure was desperate to avoid being purchased by Microsoft, though; but I don't think they did themselves any favors here.