TechCrunch is reporting that some of its sources have said that Yahoo has scheduled a special board of directors meeting on Friday to determine the fate of Yahoo. It is currently clear that Microsoft has become the successor to Yahoo, after Softbank – who previously made a bid – bowed out today and will not be challenging the bid.
However, Yahoo has two options – accept the bid or don’t accept the bid. However, Microsoft have threaten to ‘invade’ the board of directors and then allow the bid to pass. Google has offered its support to block the Microsoft bid.
According to TechCrunch (via its readers), Yahoo’s appeal in Western Europe has currently failed but has risen to success in the US and Asian markets. But a BusinessWeek article has quoted Steve Ballmer that Yahoo will live on. However, Microsoft currently runs two brands – Live and MSN. Dumping either one could see potential losses in some markets.
MSN would most likely to be dumped, with TechCrunch readers saying it should be. If MSN was to be dumped, nineMSN would no longer exist, thus ending the 10 year + partnership. Effectively, the services would be given to Yahoo!7, or Live would be set up as an independent site. MSN has also serious implications on the US, with MSN having partnership deals with Fox Sports and hosts the news site for MSNBC, which it owns 18% of the television network but 50% of the website.
I then should say that it will dump Yahoo in some areas and dump MSN in some areas, so it makes a combined market for them to co-exist. WRONG! It can’t. How can you rename a Yahoo property into an MSN property and vice versa. You can’t call Yahoo HotJobs and change it in some markets to be MSN HotJobs. Well, there are some exceptions – like Yahoo! TV and MSN TV.
So basically this leaves the entire deal pointless if they can’t find a way to co-exist.
We will just need to see if it could be a good or bad merger. We just hope it is not like the TimeWarner/AOL match up.