It’s noon-ish on Monday and nothing of note has happened on the Microsoft – Yahoo! front this weekend. Observers expected to witness the fireworks of brinkmanship and brimstone as the three-week ultimatum issued by Microsoft CEO Steve Ballmer expired at midnight-ish Sunday.
Though nothing happened over the weekend, most expect Microsoft to make an announcement early this week. What that announcement will bring is another question. Yahoo!’s Board has mounted a stiff and surprisingly strong resistance to the acquisition attempt, seemingly in a bid to drive Microsoft’s offer higher. Microsoft however, has warned Yahoo! it does not intend to increase its offer.
Some financial analysts are now predicting that Microsoft could just pack up and walk away, leaving Yahoo! spinning and reeling after four months of frantic dodging.
Perhaps this period of Sitzkrieg has been part of Microsoft’s overall strategy all along. Even if it doesn’t acquire Yahoo!, Microsoft has succeeded in weakening Yahoo!’s position and in forcing Yahoo! to alter its business plans well into the future. In short, Microsoft has totally knocked Yahoo! off its game. Even it it walks away, Microsoft has won position against its #2 rival.
In many ways, Microsoft’s antics might be the very best thing that could happen to Yahoo! as it has moved what was feeling like a moribund monolith to make substantial changes in an attempt to differentiate itself and remonetize its content. Yahoo!, though weakened, might actually be placed on a path to better health if it survives this ordeal.
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