If You Are A Yahoo! Stockholder, Are You Mad This Evening?

After seeing the news that Microsoft has abandoned its bid for Yahoo!, do you think the average Yahoo! shareholder is angry that they are unable to now get $33/share for Yahoo! stock, and instead is going to have to watch it (most likely) plummet down to around $20/share again -- the price it was at before Microsoft made its initial offer? I sure hope Jerry Yang and the Yahoo! Board of Directors know what they are doing. These are rich folks on the board and may not be able to see things through the eyes of the everyday shareholder.

Personally, I think they made the wrong decision to not accept Microsoft's $33/share offer this weekend. I honestly think it is a case of "I would rather have the ship sink than be with the "Evil Empire"....well, that wish might just come true. I hope not.

Steve Ballmer's letter to Jerry Yang is very interesting...and the response.

And how does Google feel??????

Microsoft offers 44.6 Billion for Yahoo!

[Update: It is 44.6 not 44.5 billion -- that 100 million may not be significant to Bill G., but it is to us mortals :-) ]

[Update: Would Microsoft try a hostile takeover if Yahoo! rejects the offer? That would be very interesting and a can of worms I am not sure Microsoft wants to open]

Yahoo! has not accepted this deal yet.

In the back of my mind, I knew this would happen. In fact, after Yahoo! reported earnings earlier this week, and the stock plummeted, I thought to myself "I bet Microsoft buys Yahoo! now". I didn't buy Yahoo! stock. :-( Oh well, woulda, coulda, shoulda, I guess.

Anyway, I am still chewing on this deal. Is it good for Microsoft? Is it good for Yahoo! Is it going to be a disaster a la Time Warner-AOL?

The big and obvious question is how Microsoft plans to integrate Yahoo! into its Windows Live offerings. That is a huge undertaking in my mind, and not a 100% slam dunk by any means. For example, what becomes of Yahoo! Mail -- does it get integrated into Windows Live Hotmail? Does Microsoft integrate Yahoo!'s search algorithm into its Windows Live Search?

And, not to mention the culture clash of the two companies. Yahoo! is already laying off 1000 people. Can Microsoft absorb the other Yahoo! employs, or will a mass layoff come?

And then comes the other side of the equation. How does this affect Google? Of course, this deal is a direct aim at Google. Google's stock is starting down after it reported "not great" (according to analysts) earnings last night. That doesn't really matter with respect to this deal, I don't think. It is a long term question -- will Google's dominance be affected by this deal in a negative fashion? This deal would make Microsoft the clear #2 in the search/advertising space, but could it make Microsoft #1?

Very interesting start to the morning, for sure.