Microhoo At One Week 1: Decision Nears? Yahoo Brand To Survive?

« Yahoo Live Launches - Online Video, Um, Live | Main | Rumor: Google To Acquire Plaxo »

Feb. 8, 2008 at 7:35am Eastern by Danny Sullivan

Microhoo At One Week 1: Decision Nears? Yahoo Brand To Survive?

Has it only been a week since Microsoft thought it was a nice day for a Yahoo wedding? Indeed, so. And what's happened since? Rumors that Yahoo is nearing a decision, while Microsoft's Steve Ballmer seems to want to encourage his potential new employees that a Yahoo brand will survive. Let's do the news.

Yahoo Board To Determine Fate Of Company Today from TechCrunch suggest today is the day that Yahoo will make a decision:

Sources have indicated to us that Yahoo has scheduled a special board of directors meeting on Friday to determine, effectively, the fate of the company.

There's been much speculation over the last week if anyone could save Yahoo from Microsoft. Could Google jump in to buy Yahoo? Probably not because of competition laws, but it does seem like a partnership with the company might be the only real alternative. Below, stories over the past week on the idea of Google as Yahoo's savior, plus Google's concerns that Microsoft might win Yahoo's hand:

Can Google Save Yahoo By Taking Over Search?, Search Engine Land
Google Objects To Microsoft & Yahoo Wedding; Microsoft Responds -- Irony All Around, Search Engine Land
Microsoft Adversary Rises Instinctively at Yahoo Bid - New York Times, New York Times
Would The FTC Block A Google Deal With Yahoo?, Barron's
How Google Could Keep Yahoo From Microsoft, New York Times
Outsourcing Search To Google Will Save Yahoo How?, Silicon Valley Insider

How about others? Today's big news in that department seems to be that Softbank -- which owns a big chunk of Yahoo Japan -- which is a money making powerhouse -- doesn't plan to sell its stake to Microsoft but rather is playing wait-and-see. TechCrunch sees that as a sign that Softbank won't dive in to fight Microsoft. Softbank says Yahoo Japan holding will not be sold from the Financial Times has more on that story.

Anyone? Anyone? News Corp has said no in stories we've previously covered, as have other likely candidates. But here are some other stories from the past week on that topic:

Yahoo Studies Alternatives to Microsoft, Wall Street Journal
Murdoch: Not Interested In Yahoo!, Forbes
Rupert Murdoch: $900M is better than -$45B, HipMojo
The Top 5 Reasons Nokia Should Bid On Yahoo, InformationWeek
Diller Says a Microsoft/Yahoo Deal Good for Ask, ClickZ
Time To Change Microsoft - Yahoo (MSFT/YHOO), Here's a Better Deal, Silicon Valley Insider

One biggest challenge to the deal may be if Microsoft's shares drop. Since the deal is tied to the share price, Microsoft Bid for Yahoo Drops To $29.50 a Share from Silicon Alley Insider noted that the initial value of the deal has already gone down. That could put shareholders on both sides off.

Another challenge is that Yahoo employees are a proud lot with execs that TechCrunch says will do anything to thwart a deal. I can certainly agree with that. It's interesting to hear this in Will Yahoo! Feel the Love? from BusinessWeek:

Ballmer says: "Yahoo, the brand, will live."

In reality, Ballmer can't say that at all. Microsoft was at pains to tell us that no specific decisions have been made -- that they cannot be made until executives from both companies meet (if the deal goes ahead) and mutually decide what makes sense. Yahoo the brand might very well NOT live. Or it might live but certainly not be a flagship brand -- though if Microsoft were wise, they'd certainly keep it a strong one.

The statement feels like a way for Ballmer to say to rebels in Yahoo not to worry over being assimilated. For more on morale in both companies, see the posts below:

Yahoo! Addresses The Troops (And So Does Microsoft), Search Engine Land
The Latest From Jerry: Stay Focused, Yahoos!, Search Engine Land
Microsoft/Yahoo - let the exodus begin, Redeye VC

As I've said, it's been a week now. In addition to the stories above, here are others we've covered in the special Microhoo section of our SearchCap newsletter:

The Microhoo! hoo-hah, The Economist
Microsoft-Yahoo Linkup May Shut Google Out Of Display, Bloomberg
Could Anyone Buy Google? | Mark Evans, Mark Evans
Flickr's Version Of A Mass Protest, TechCrunch
Privacy Groups Ready to Oppose Microsoft Takeover of Yahoo, Search Engine Journal
Silicon Valley after a Microsoft/Yahoo merger: a contrarian view, Marc Andreeseen
Yahoo Holders: What Are You Waiting For?, Wall Street Journal
Google, Yahoo Going After Outlook, eWeek
Clock Is Ticking On Yahoo's Board, CNN Money
Yahoo faces takeover bid with new board chair, San Francisco Chronicle

And in review, some key stories from us over the past week:

All these stories can also be found in our Microhoo section. And for more on today's developments, see related discussion on Techmeme.

Like The Story? Vote For It On Yahoo Buzz!

Subscribe To Our Search Feed!

Share & Bookmark This Story!

By Danny Sullivan Permalink Jump To Comments See Related Stories In: Microsoft & Yahoo Merger, Microsoft: Business Issues, Yahoo: Business Issues

Reader Comments

Save the date for:
• SMX Madrid (in Spanish, May 20-21)
• SMX Advanced - Seattle, WA (June 3-4) Register today! Early bird rate expires May 9!
• SMX Local & Mobile - San Francisco, CA (July 24-25) (July 24-25) Pre-agenda rate expires May 2. Get the lowest rate by registering now.
• SMX East - NYC - (Oct. 6-8)
• SMX London - November 4 & 5, 2008