ADOTAS — Microsoft Corp. is digging in its heels and refusing to play ball with hard-to-get Yahoo Inc. “People close to the company” told The Wall Street Journal that two months after Microsoft made its $44.6 billion offer (spurned as too low in February) it has no plans to raise its bid (despite last week’s rumor to the contrary, courtesy of Citigroup analyst Mark Mahaney).
If the latest round of hearsay is true, Yahoo may be forced to buckle down and talk (the only face-to-face meeting the two companies had this year was reportedly not fruitful) to Microsoft again, sweeter deal or no:
- Yahoo seems to have exhausted other merger avenues with companies like News Corp. and AOL.
- M&A delays in a stagnating economy are unwise for all parties involved.
- Yahoo’s stock continues to spiral downward, making the initial $44.6 billion offer look pretty good.
- Yahoo shareholders haven’t pressured the company to move on the deal … yet.
But there may be hope for Yahoo yet …. A new Chinese anti-monopoly law set to go into effect on August 1 may complicate, delay or cancel the deal entirely.