Microsoft seems to have lost its patience with Yahoo. It is contemplating a hostile bid for the company, if Yahoo! does not begin talks with Microsoft soon. The outlook of Microsoft had been clarified by its chief financial officer Chris Liddell after Microsoft witnessed an 11 percent drop in its third-quarter profit. However, despite of drop in profit, revenues of Microsoft however rose from $14.39 billion to $14.45 billion in the last three months. Microsoft had offered Yahoo! $44 billion for take over while Yahoo! is vacillating over the issue.
Quarterly results from Yahoo! showed that the company had performed better than expected that raised speculations that Microsoft would be forced to raise its cash-and-shares offer to win control over Yahoo!. Yahoo! is saying that it wants a higher bid before it begins any meaningful talk with Microsoft. However, Microsoft has given Yahoo! time until Saturday to respond after which it will propose its own candidate for the Yahoo! board.
For Microsoft, acquiring Yahoo! is very important to compete with Google and seize a sizable portion of the online advertising revenue. Yahoo! has been dillydallying with the offer that Microsoft made last February. The search group has also approached AOL. It is even open to joint venture with its biggest rival Google.
Source:Times Online
Image
