Wednesday, May 21, 2008

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.More>>