It’s been another disappointing week for Yahoo. Nobody likes to get rejected, but to get rejected twice in one week is soul shattering.
There’s been a lot of speculation as to whether or not the Google-Yahoo deal would go through, and what affect that would have on the industry. Naturally, many people believed that it would create a monopoly, but it was left in the hands of the department of justice.
Over the last few months the Yahoo share priced has fluctuated dramatically as Yahoo has bounced in and out of negative headlines. Industry experts, reports and shareholders have all had their concerns about the company, and it seemed that Google was the only thing that was going to make them financially viable again. Of course, this would all depend on what the department of justice had to say.
This week Google decided it had had enough of the department’s probing and that it didn’t really need Yahoo anyway, not enough to continue with these investigations. In a moment of shame and desperation, the original internet giant turned to Microsoft who it had turned down several months ago.
Yahoo told reporters that it had really just been playing hard to get. It had originally rejected their offer of $33 per share, but they were “ready to negotiate”. With the share price at bargain rock-bottom price of nearly a third of the original offer, and with the chance to use Yahoo! to boost MSN’s minute market share, it came as a serious surprise when Microsoft turned round and rejected Yahoo.
It seems that even Microsoft have moved on. Only time will tell what is left for internet company Yahoo but with a falling share price, job cuts and merger rejections, things are looking very bleak for Yahoo!
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