MSFT-YHOO: The Fallout

Franky, I don’t have the energy this morning to do an elaborate analysis of all the potential scenarios. Here’s a list however:

  • MSFT comes back at some future point and bids again
  • MSFT goes after AOL now
  • MSFT buys Facebook for $15 billion
  • MSFT goes on a buying spree and picks up several, high-profile sites (e.g., Digg, LinkedIn, etc.)
  • Yahoo!, needing to do a deal to placate shareholders and show momentum, still does a deal with AOL and/or Google
  • In a “be careful what you wish for moment,” Y! now needs to really execute on AMP and YOS (open strategy)
  • Yahoo! is off about $6.4 in pre-market trading. If it ends the day above $20 that will be a win for the company because of the “Black Monday” expectations.
  • Here come the shareholder lawsuits re Yahoo!

Here’s a quick re-cap of the timeline of events and here’s more speculation about what will come over at Techmeme.


From Yahoo! CEO Jerry Yang’s post:

So, what’s next? With Microsoft’s withdrawal, we’ll be better able to focus our energy on growing our industry leadership and maximizing value for stockholders. We’ll continue to execute on our plan — making your Internet experience as personal, relevant, open and social as possible, serving advertisers so well they insist on working with us, and opening up Yahoo! in a way that developers dream of. And, we’ll also continue to pursue strategic opportunities that position us for long-term success.

Has this experience changed us? Of course, it has. We’ve emerged a stronger, more focused company with an even greater sense of purpose. I’m so proud of how this company has come together, put the noise aside, and showed the world that we have the resolve and determination to thrive in challenging times.

We know the spotlight will probably stay on us for a while. That’s fine — we have a clear path ahead and momentum to build on. And thousands of dedicated Yahoos around the world who have held up well to scrutiny. It’s now up to us to show what we Yahoos can really do.

By the way, I’m sure you’ve all read or watched the news about this. Frankly, there’s a lot of nonsense and misinformation in what’s being reported. Just so we are all clear, here’s what happened. The board took its mission very seriously. We clearly indicated to Microsoft that we were open to a transaction but only if it were on terms that fully recognized the value of Yahoo! and was in the best interests of our stockholders.

No one is celebrating about the outcome of these past three months… and no one should. We live and work in a competitive world and the Web is only going to get more competitive. Executing on our strategic plan is what matters most.


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