A picture of a fly swatter crushing a fly with Microsoft the fly and Yahoo the swatterNew details have surfaced of Microsoft’s most recent dealings with Yahoo and another offer from Microsoft that was again swatted down by Yahoo. BoomTown’s Kara Swisher talks of Microsoft’s most recent bid that was designed to stifle the Google and Yahoo partnership before it was signed; a very tempting bid at that.

Swisher also points out a very insightful article by Harry Blodget on “Why Yahoo Passed on Microsoft’s New Search Deal (New Details!)”. Blodget sums up the reasons for Yahoo’s choice well in this latest bid:

“Yahoo decided that the strategic drawbacks of the Microsoft deal outweighed the potentially huge financial and operational benefits… and told Microsoft to take a hike.”

In closing, I noticed that Microsoft put out a plain-jane press release in response to Yahoo’s signed partnership with a few very simple words indicating that doors are still open for partnership:

“In the weeks since Microsoft withdrew its offer to acquire Yahoo!, the two companies have continued to discuss an alternative transaction that Microsoft believes would have delivered in excess of $33 per share to the Yahoo! shareholders. This partnership would ensure healthy competition in the marketplace, providing greater choice and innovation for advertisers, publishers and consumers.

“As stated on May 3rd and reiterated on May 18th Microsoft was not interested in rebidding for all of Yahoo!. Our alternative transaction remains available for discussion.”

May the drama continue…

by Ross Dunn, CEO, StepForth Web Marketing Inc.