Yahoo! "critical" to Microsoft

Category: Internet Trends

April 29th 08, 10:51

The acquisition of Yahoo! is more important to Microsoft than may have been initially clear, one Wall Street analyst has asserted.

Scott Kessler, a technology analyst with New York's Standard & Poor's, told the Guardian that Microsoft could approach Yahoo!'s board with a slate of prospective directors within a matter of days.

He said: "Yahoo!'s more critical to Microsoft than people might have thought.

"I think they've been surprised and pretty frustrated by the fact that they've really got nowhere."

The publication observes that the search pioneer may be able to defend against Microsoft's advances with the use of a "poison pill" - a mechanism introduced in 2001 that would see Yahoo! stock sold at a bargain price to other shareholders if any company mounted a stake of more than 15 per cent.

This weekend, the deadline imposed upon Yahoo! by Microsoft by which the Silicon Valley company had to accept its 31 cents-per-share offer passed without comment from either party.

This news story was brought to you by Bluhalo, a leading UK digital agency.

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