Microsoft has made a bid to acquire Yahoo:
http://www.techmeme.com/080201/p26#a080201p26
http://biz.yahoo.com/prnews/080201/nyf040.html?.v=101
Microsoft has developed a plan and process that will include the employees of both companies to focus on the integration of the combined business. Microsoft intends to offer significant retention packages to Yahoo! engineers, key leaders and employees across all disciplines.
In his letter to the Yahoo board, Steve Ballmer states that Yahoo’s "reformulated strategy" has not worked and that "Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in [their] proposal." In other words, your plan didn’t work but we’ll buy your company… and don’t even think about trying to hide this offer from your stockholders.
This should be interesting to watch. Yahoo stock jumped at the news, which might force Microsoft to up its offer.
Frankly, I’ve quietly thought this to be inevitable. Yahoo gives Microsoft a family of hipper web properties (Flickr, delicious, Upcoming, etc.) and a place to grow online Office tools away from the Office team. Yahoo was not thriving as an independent brand despite the myriad cool things they offer. There are only so many suitors out there with the resources and motivations to acquire Yahoo. Now let’s hope that Microsoft can get Yahoo back on track without screwing up the cool parts of Yahoo.
Maybe I’ll finally be able to play Yahoo! Music Unlimited tracks on my Zune…