While the massive bid from Microsoft to buy Yahoo may now be history; the boss of Yahoo has since stated that while the bid may have been dropped, he sees no reason why the two companies should not work together in the future. Yahoo boss Jerry Yang was recorded as saying that a merger between the two industry giants would have a “tremendous amount of power”.
Mr Yang insisted that it was Microsoft that broke off the deal but Yahoo was still interested in listening to future propositions from the software giant. Through these talks it is surmised by many that an understanding between the two companies may well become apparent. It is doubtless that a combined effort from Yahoo and Microsoft would go a long way to combating the dominance of Google.
In a recent conference the Yahoo boss was insistent that the two companies were discussing a joint effort. The crux of the issue is that Yahoo wants to understand fully what Microsoft would hope to gain from a potential partnership. While the bid has been dropped, seemingly rumours are abounding over what the two companies intend to do in order to quell the Google threat.
Yahoo directors maintained their position that the bid, despite its huge figure in fact undervalued the company. This however has not done anything to disquiet certain shareholders that are still critical of Yahoo’s long term objectives and overall growth plan. While the AGM of Yahoo was postponed due to this backlash, company executives were adamant that they are not entrenched by their shareholders.
Time will tell how the faltering Yahoo will progress in the cutthroat search engine industry. Whether a Microsoft partnership materialises is still a matter of conjecture but if it somehow comes about, Google could well find themselves fighting a battle on two fronts.
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