February 23, 2008
Some updates on the Microsoft-Yahoo approach:
Kevin Johnson, president of Microsoft Platforms and Services Division sent an internal email yesterday. The email was obviously designed to be leaked (and ended up on Microsoft.com after it got into the blogosphere) judging by the language in it and the mentions of looking after both companies employees in the event of the merger going ahead. Trying to stop people jumping off the ship? Or just a good PR exercise?
Yahoo are facing another lawsuit, this time from some pension funds who claim that by declining the Microsoft offer they are not returning value to shareholders and are actually risking their investments by dragging it out looking for other parties to strike a deal with.
Lastly, Sergey Brin has expressed his nervousness at the deal going ahead, saying that ‘when you start to have companies that control the operating system, control the browsers, they really tie up the top Web sites, and can be used to manipulate stuff in various ways. I think that’s unnerving’.
So no progress really, rumours still fly about Yahoo trying to find anyone else to deal with and Microsoft seem confident as ever that the deal will go through in the end.