The End?

By Reuters  |  Posted 06-13-2008 Print Email

The End?

Analysts said they did not expect that Yahoo and Microsoft would try another round of negotiations.

"It certainly seems to be the end," said Derek Brown, an analyst at Cantor Fitzgerald. "In their most recent discussions, they were talking about totally separate visions of both a deal and the future."

Microsoft is expected soon to be on the prowl for other acquisition targets because it has not given up its goal for online advertising.

"Microsoft will keep trying," said Morningstar analyst Toan Tran. "Yahoo is one of the most popular sites on the Web, and there is no one else with as much traffic. AOL may be one option, and it may not be as expensive."

Icahn, who has waged a proxy battle to remove Yahoo's board at its August 1 annual meeting, had urged Yahoo to secure a higher price from Microsoft. Icahn has said a partnership with Google should only be a second choice.

Icahn could not be reached for comment.

Yahoo shares sank as low as $22.50 on news of the talks failing and expectations of the Google deal. It was their lowest level since January 31, the day before Microsoft announced its offer for the company.

Yahoo shares fell $2.63 to $23.52 on Nasdaq. Google shares finished up $7.75 at $552.95, and Microsoft closed up $1.12 at $28.24.

Back to homepage



Submit a Comment

Loading Comments...