Microsoft and Yahoo – A Business Strategy Case Study

July 8, 2008

After enduring five months of frustrating negotiations with no acquisition, Carl Icahn is busy working to resurrect a Microsoft deal with Yahoo.  In response to Microsoft’s refusal to continue negotiations with Jerry Yang and the present board of directors of Yahoo, Icahn is discussing a replacement of Yang and the existing board at the August 1 shareholders’ meeting. 

In talks with large mutual fund managers who hold significant amounts of Yahoo stock, Icahn contends the present board at Yahoo is not fulfilling its fiduciary responsibility to its shareholders.  Some contend Icahn has a valid point as support continues to decay for Jerry Yang’s long-term plans for Yahoo.

Yesterday, Yahoo’s share price closed at $24 / share, well below the $34 / share previously offered by Microsoft.  Mutual fund managers with significant Yahoo holdings are faced with finding ways to increase portfolio returns at a time when the economy is facing extreme uncertainty in many sectors and a bearish stock market.  Some contend Icahn is approaching these mutual fund managers with ideas of replacing the present board and returning to negotiations with Microsoft.

As this drama is far from finished it will be interesting to note Google’s competitive strategy to prevent a potential Microsoft – Yahoo merger.  Stay tuned as the drama continues.

If you’re searching for New Orleans computer service or repair of your Microsoft based system or network, then call the Microsoft specialists at 504-469-6991. Onsite Computer Services, Inc. in New Orleans

You may also be interested in Onsite Computer’s Blog.

This New Orleans On-Site Computer Service post was provided by Eli Lucas. Eli can be reached at eli@onsitenola.com. Onsite Computer serves the Microsoft computing needs of small businesses throughout the Greater New Orleans area including Uptown, Lakeview, Broadmoor, Mid-City, Metairie, Jefferson, Kenner, Westbank, French Quarter, and the Warehouse District. Please visit our website for New Orleans Computer Service.

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