Microsoft Withdraws Offer for Yahoo

Posted this comment on the New York Times 26 minutes after news broke that Microsoft was withdrawing its bid for Yahoo, Inc.

#21.May 3rd,2008
9:40 pm

It seemed an attractive aquisition until they, at Microsoft, realised they were purchasing a company that represents what they compete with, namely Open Source initiatives that demonstrate a business dependence on Windows is naught but smoke and mirrors?

When did this deal ever make sense?

— Posted by Nicholas Alexander

Reader reaction is immediate and they range from cheers for Steve Ballmer to scowls at Jerry Yang for refusing a good offer, which was 5 billion up on the opener. Maybe the biggest bluff in history, trying to get MS to bid another 5 billion. But it does appear that Steve Balmer has withdrawn even from a hostile takeover if Yahoo would respond by outsourcing to Google.

I perceive the problem was more that if Microsoft absorbed the Yahoo workforce, it would saddle them with a software culture divide that would be difficult to heal. Dot.net and Javascript already compete, if you see what I mean.