Microsoft shareholders hate the Yahoo deal (as they should–because it will be a disaster). Now that Yahoo’s last propaganda effort–“alternatives”–is petering out, its next one should be aimed directly at these angry shareholders. Suggested theme:
How the Microsoft-Yahoo Deal Will Be a Disaster: Let Us Count the Ways
As long as Yahoo distributes its propaganda surreptitiously enough, it won’t make it impossible to ultimately agree to the Microsoft bid. And if enough Microsoft shareholders stomp their feet in disgust or run for the exits, even Steve Ballmer will eventually listen. Why? Because he has to. He has a fiduciary duty to shareholders, too.
(Unfortunately, one likely outcome of this tactic is that Microsoft might press on with the deal but refuse to raise its bid. This is why Yahoo has to be careful not to seen as the one stirring the shareholder-rebellion pot).
In the meantime, Zachery Kouwe and Peter Lauria at the Post gather some of the latest sentiments about the deal:
Microsoft analysts and investors are wondering whether the $40 billion the company is prepared to pay might be better spent in other ways.
Driving that view, according to one source close to Microsoft, is the perception that Yahoo! is a dying business that isn’t worth the time or money that the Redmond, Wa.-based software giant is offering.
“Yahoo! is getting a great deal for a property in the toilet and a company which can no longer innovate,” said this source…
“Since each company separately has not been able to gain online advertising market share, we wonder if the combined companies would fare any better,” wrote William Blair analyst Laura Lederman in a recent report… Etc.
The answer, according to many of the Post’s sources, is the “Godfather-style coup” solution we described two weeks ago: Spend the $40 billion buying Slide, Rock You, Facebook, Salesforce.com, and a dozen other hot companies.
Microsoft’s Colossal Strategic Error: We Need To Be In Advertising
A Much Better Microsoft-Yahoo Deal
Why The Microsoft-Yahoo Deal Will Be a Disaster
Microsoft’s Shareholders Hate the Yahoo Deal–Can You Blame Them?
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