Yahoo! Rejects Microsoft’s Bid (No SEO Duopoly Please)

It looks as if Yahoo! has rejected Microsoft’s previous offer to acquire the former king of cyberspace for approximately $45 billion.

Microsoft was hoping to acquire the company in a vain attempt at catching up to Google, but it looks as if Yahoo! has decided to play Russian Roulette in a desperate attempt maintaining its independence (as well as its pride).

(Wall Street Journal) After a series of meetings over the past week, Yahoo’s board determined that the $31 per share offer “massively undervalues” Yahoo, the person said. It also doesn’t account for the risks Yahoo would be taking by entering into an agreement that might be overturned by regulators. The board plans to send a letter to Microsoft on Monday, spelling out its position.

Yahoo’s board believes that Microsoft’s is trying to take advantage of the recent weakness in the company’s share price to “steal” the company. The decision to reject the offer signals that Yahoo’s board is digging in its heels for what could be a long takeover battle. The company is unlikely to consider any offer below $40 per share, the person said.

While a Microsoft assimilation would have provided a (much needed) competitor with Google, it would have also have created a duopoly which would probably not benefit bloggers in the long run.

With all the fuss about Google having too much power, the future may look even worse if web publishers, news organizations and your “pajama army” (aka bloggers) being forced to deal with only two competitors–Microsoft and Google.

Even though other search engines (such as have appeared on the scene, they depend upon Google’s favor in allowing Adsense ads to be displayed next to their search results, which probably downgrades their status as a serious player.

Hopefully Yahoo! will figure out a way to boost its earnings (perhaps by opening its Panama Ads to the rest of the planet) as the last thing the world wide web needs is having to decide between two angry giants, who are in an “eternal war” against the other corporate entity.

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