Yahoo's Up to Serve

For a while now, I've been holding my breath around the discussion of Microsoft and Yahoo's tiff. But with Microsoft's announcement today of its proxy battle authorization for the company that snubbed its bid last week (a move that will prove cheaper than raising its original bid), my curiosity grows and the drama just keeps getting better. The ball's in Yahoo's court now.

Many people wonder, did Yahoo make a mistake by rejecting the Microsoft offer? It is said in other reports that Yahoo's board could be vulnerable in this proxy fight since all of its directors are up for nomination this year, and in accordance with its bylaws they're elected by a plurality of votes cast in a contested election. Supposedly the senior executives at News Corporation don't expect anything to happen with their discussions with Yahoo over a possible merger and Time Warner seems to be skeptical.

With Google somewhat rooting for Yahoo from the stands, it would still prove to be hard times for Yahoo if they announced a deal with the internet Giant. It's unlikely the shareholders would believe that the money from search alone would be enough to back Yahoo's reasoning for turning down Microsoft.

My two cents is Yahoo's putting up a fight it won't win. Either Microsoft is going to get its way or Yahoo will have to settle for less which would be less than ideal to the prior. I'm grateful everyday I didn't get that job offer from Yahoo back in 2007 and wish the best for its employees in the coming months.

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