Microsoft has confirmed it is still looking to acquire Yahoo, following the battle against Carl Icahn’s plan to replace the entire board.
Microsoft’s decision to walk away from a bid for Yahoo prompted huge controversy and Icahn’s decision to try to oust the board – and it appears that, in what appears to be a study of big-business brinkmanship, both companies are now ready to return to the table.
Microsoft’s statement, released "in light of developments" read:"[Microsoft] is not proposing to make a new bid to acquire all of Yahoo at this time, but reserves the right to reconsider that alternative".
Although this is ostensibly a tentative statement, the intent is clear, and it appears Yahoo’s opposition to the takeover has been slapped down by the financial necessities that it faces.
Overtures to other companies – believed to include both Google and Rupert Murdoch’s News Corp. - have not come to fruition and Microsoft may not get the merger that it believes will make it more competitive on the internet.
Currently Google dominates both search and online advertising, but Microsoft hopes that a huge merger with one of its other rivals in Yahoo will change the game in its favour.