updated 08:25 am EDT, Fri April 4, 2008
MS Yahoo Impasse
Microsoft and Yahoo have held meetings this week over the former's takeover bid but still have not moved towards a deal, according to tips provided to the Wall Street Journal. Those reportedly familiar with the talks claim that neither side is willing to leave its existing position, with Microsoft unwilling to raise its initial bid of $31 per share and Yahoo's executive staff refusing to consider any current offers. The search engine firm sees no reason to accept Microsoft's terms when it formally rejected the offer weeks before, the Journal says.
Pressure from Microsoft is expected to continue. The company is widely known to believe that it can wait out Yahoo's current resistance, with the combination of a poor US economy, current sluggish performance at Yahoo, and a potential change of directors leaving the web pioneer little choice but to accept the initial bidding terms.
Yahoo has meanwhile taken steps to counteract Microsoft's moves, delaying board nominations as well as entertaining offers from several other firms that could help sour the deal for Microsoft, including AOL and Fox owner News Corp.