Microsoft, Yahoo Appear To Dig In Their Heels

Both the Wall Street Journal and CNET are reporting about an apparently unsuccessful meeting between Microsoft and Yahoo this week. According to the Journal, “The Microsoft executives showed no willingness to raise their cash-and-stock offer, and the Yahoo camp continued to refuse to enter formal negotiations without a sweetened bid, people familiar with the matter say.”

While it has seemed that a Microsoft acquisition was all but certain, outwardly Yahoo and its various representatives betray no such willingness to concede that. Indeed, Yahoo continues to race ahead with numerous initiatives that assume the company will remain independent.

The shareholders are the key to resolving the stalemate. Yahoo reports first quarter earnings for 2008 on Apr 22. If Yahoo performs, it will buy itself more time and options. If not, the drumbeat will get even louder from institutional shareholders to accept the bid.

Related Topics: Channel: Industry | Microsoft & Yahoo Search Deal

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About The Author: is a Contributing Editor at Search Engine Land. He writes a personal blog Screenwerk, about SoLoMo issues and connecting the dots between online and offline. He also posts at Internet2Go, which is focused on the mobile Internet. Follow him @gsterling.

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