Big week in Microsoft-Yahoo battle

22-04-2008

by Silicon.com

In the latest in the Microsoft-Yahoo takeover bid, the software maker has set a Saturday deadline for Yahoo to come to the bargaining table or else face a proxy fight.

Colouring the state of things will be profits reports from both Microsoft and Yahoo due this week. Yahoo reports after US markets close on Tuesday, while Microsoft is set to release quarterly numbers on Thursday.

Those reports are all the more significant in that Microsoft's bid -- so far -- is half stock. A good profits report from Yahoo might put pressure on Microsoft to hike its bid, while a negative one might increase the heat on Yahoo to sell.

Other players remain in the discussion, with reports Yahoo is still in talks about a partnership with AOL and continues an advertising test with Google.

Meanwhile, Rupert Murdoch signalled Monday that he may not be totally against joining with Microsoft. According to Reuters, Murdoch said at an event Monday: "[It] depends on the deal."

He indicated that joining with Microsoft is probably the only way News Corp would be involved. He said in a speech before the Atlantic Council: "I certainly can't afford to bid against Microsoft [for Yahoo]."

Ina Fried writes for CNet News.com.

Reprinted with permission from Silicon.com

Original article: Big week in Microsoft-Yahoo battle from CNET News.com