Microsoft Revenue Drop May Cancel Yahoo Buy

Software giant Microsoft has been attempting to purchase Internet giant Yahoo! in hopes of leveraging the internet presence of Yahoo! in Microsoft's battle with Google. The original offer for Yahoo! was a whopping $44billion; however since this offer Microsoft has seen a revenue drop this last quarter which could greatly affect the software giant's ability to up the price again in hopes Yahoo! would accept.

Revenues at Microsoft were down a total of 6%. This includes a 24% drop in revenue from Windows Operating System alone. The ongoing battle has hurt stock prices of both Microsoft and Yahoo!.

Microsoft's next move is unknown but there has been talk of potentially going directly to the Yahoo! shareholders with a buyout plan.

It is too early to tell how this will end, but Microsoft has made it known that it will try all available routes; up to and including a hostile takeover. Recent comments from Microsoft CEO Steve Ballmer and CFO Chris Liddell have mentioned that not acquiring Yahoo! is also an option.

Whatever Microsoft's plan one thing is clear, the longer this takes, the more competitor Google can use this to their advantage is obtaining both clients and employees.

Source: Wikinews
* the micro-who dept. "Falling Microsoft Income Endangers Yahoo Bid". Slashdot, April 29, 2008
* Dawn Kawamoto "Yahoo, Microsoft shares sag, post-deadline". CNET News, April 28, 2008
* Juan Carlos Perez, IDG News Service "Microsoft/Yahoo Deadline Passes With No Deal". PC World, April 27, 2008

admin_huliq's picture

Posted April 29th, 2008 by admin_huliq

Your comments...

Post new comment

The content of this field is kept private and will not be shown publicly.
  • Lines and paragraphs break automatically.
  • Allowed HTML tags: <p> <br> <a> <em> <ul> <ol> <li> <strong> <blockquote>

More information about formatting options

7 + 7 =
Solve this simple math problem and enter the result. E.g. for 1+3, enter 4.