Filed under: Deals, Internet, Competitive strategy, Microsoft (MSFT), Yahoo! (YHOO), Technology
Discretion is the superior part of valor — that’s what I was always taught. Perhaps the time for a strategic withdrawal has come in the battle of Microsoft Corp. (NASDAQ: MSFT) vs Yahoo Inc. (NASDAQ: YHOO). Somehow, though, I can’t envision it will take that turn, as I read the analysts, strategists and pundits. How could it have become so adversarial? Surely something unsightly may be at hand.
Did Steve Ballmer imagine this type of scenario when launching his original bid for Yahoo? Did he ever envision the attempted synergy would become a battle of wills as much as money? To what degree does pride factor into this pending recipe for disaster? I dare state that is what it has all come down to now. Pride goes before a fall, they state.
Does Steve Ballmer have the grace within him to fold his tents and quietly withdraw? Or shall his siege works be lain against the walls of Yahoo in an attempt to forcibly take it? Already he has warned that he’ll appeal to the sensibilities of Yahoo’s investor rank and file. It’s a tactic which has been used in many a war. However, attempting to romance the populace away from their leaders seldom, if ever, has worked. In the meantime, Microsoft’s own shares are on the decline, diluting the strength of its acceptable offer.
I submit to you that at this time Microsoft should disengage from the situation entirely. Giving Yahoo some time to fully digest the reality of what it is facing might be a worthwhile strategy. To force the matter any further right now may only lead to the degradation of the reputations of both companies. That’s something that no one desires.
The powerful silence emanating from an adversary which has quietly withdrawn places nothing but unanswerable questions on the horizon.
Gary Sattler is a freelance blogger. He does not knowingly have interest in the companies mentioned in this blog post.
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