A very insightful explanation why MS feigned interest in buying out Yahoo. As many people noted, the offer made no sense - how does buying the 2nd also-ran crappy search technology help you beat #1, especially if you already have your own in-house crappy also-ran search technology in the first place?
This is the best explanation I've read so far - a nice lesson in business acumen, showing that Microsoft is still pretty good at playing such games.
The author (I am not that blogs author by the way, if that isn't obvious) explains it quite well, IMHO.
Basically Microsoft drew a lot of media attention to the fact that Yahoo was in a rather weak position, and that they would look stupid pretty much no matter how they would react to Microsoft's offer.
Yahoo stock used to be around $30 half a year ago. It has recently dipped below $10 for a while.
Basically their stock has tanked since Microsoft walked away. It would have tanked anyway, eventually, but it would likely have taken much longer.
Perhaps Microsoft will still buy the brand-name once it becomes cheap enough, thus taking over a large part of Yahoo's market share.
Ah, from the article I was half-expecting them to do something after they walked away from the deal, but it was just the offer itself. Thank you for the explanation, the article left it a bit unclear for me for some reason.
A very insightful explanation why MS feigned interest in buying out Yahoo. As many people noted, the offer made no sense - how does buying the 2nd also-ran crappy search technology help you beat #1, especially if you already have your own in-house crappy also-ran search technology in the first place?
This is the best explanation I've read so far - a nice lesson in business acumen, showing that Microsoft is still pretty good at playing such games.
I didn't understand how they helped them die by offering to buy them, though... Did you/can you explain?
The author (I am not that blogs author by the way, if that isn't obvious) explains it quite well, IMHO.
Basically Microsoft drew a lot of media attention to the fact that Yahoo was in a rather weak position, and that they would look stupid pretty much no matter how they would react to Microsoft's offer.
Yahoo stock used to be around $30 half a year ago. It has recently dipped below $10 for a while.
Basically their stock has tanked since Microsoft walked away. It would have tanked anyway, eventually, but it would likely have taken much longer.
Perhaps Microsoft will still buy the brand-name once it becomes cheap enough, thus taking over a large part of Yahoo's market share.
Ah, from the article I was half-expecting them to do something after they walked away from the deal, but it was just the offer itself. Thank you for the explanation, the article left it a bit unclear for me for some reason.