Microsoft to Yahoo: "Why I Oughta..."

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Tech Observer

Main

Vista: The New Coke of Software X Prize, Meat Edition

Apr 25 2008 12:57AM EDT

Microsoft has spent the past month threatening to punch Yahoo right in the kisser, and now it seems to be threatening to walk away from the fight entirely.

"As outlined in our recent letter to the Yahoo board, unless we made progress with Yahoo towards an agreement by this weekend, we will reconsider our alternatives," Microsoft's chief financial officer, Chris Liddell, said late Thursday. "These alternatives clearly include taking an offer to Yahoo shareholders or to withdraw our proposal and focus on other opportunities."

So Microsoft is giving itself an out. Maybe it's rethinking whether it actually wants Yahoo. And if Microsoft walks away now, Yahoo's stock will go through the floor. Then what is Yahoo going to do? Maybe some of Terry Semel's Hollywood friends can figure out a good ending to this script for Yahoo, cuz right now there doesn't seem to be one in sight.

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