Microsoft and Yahoo THE RIVALS MEET

SAN FRANCISCO – Yahoo Inc. met with Microsoft Corp., this meeting entailed talking about the unsolicited bid take over in the early days of the week, it was a huge move that could lead to goodwill amongst the two rivals.

It was on a Monday when the meeting happened near Sunnyvale headquarters of Yahoo, said by a source that had been familiar with the situation. The source remained unidentified stating the reason that start up meetings have not been disclosed.

There were now investment banker who attended the said meeting on Monday, and there hasn’t been talks over Microsoft to raise its offer that originally is at $44.6 billion, amounting to $31 per share. The bid had already been rejected by Yahoo, debating that the company’s Internet franchise is of a higher value.

 Though it was confirmed that senior management were in the meeting, the presence of Microsoft Chief Executive Steve Ballmer and Jerry Yang of Yahoo had not been confirmed to be in the meeting yesterday Monday.

This is Microsoft’s first change to coincide Yahoo like proposing a marriage to Yahoo as the maker of the software expressed and laid out its plans a couple of weeks ago.

Yang had been tying to maintain divisions from Microsoft as it has been seeking other alternatives and alliance with the leader of advertising which is Google Inc., News Corp’s MySpace.com and AOL.

Microsoft takes hold of their bid firmly as they warned Yahoo that they might take drastic measures or a hostile takeover if Yahoo continues to hesitate in making the deal. Analysts also concluded that Microsoft would not budge increasing their bid.

The story may take a couple of weeks more to have the it resolved and determinants can be based on Yahoo’s quarterly earning on April 22. The result on April will allow Microsoft to define their next move towards Yahoo.

Google is taking advantage of the situation as it tends to raise its competitiveness in the lines of advertising as it made acquisitions of $3.1 billion on online ad service of DoubleClick Inc. as a move to expand their advertising horizons.

This move of Microsoft towards Yahoo is believed to post a threat against Google.

There are two outcomes of this meeting and it can be laid out as getting in a more serious negotiation or just a decoration to attract an even alternative with other suitors fro Yahoo.

Analysts had claimed that while there are other alternative alliances of Yahoo, the companies that count in them may not want to be affiliated with once another. Google has offered to tie up with Yahoo but it seems that the anti trust regulations will make it hard for the two companies to work to together and some other claim that its close to impossible.

Yahoo is taking their time to rethink the whole situation as they appear to not be in a rush with things for resolution. Microsoft is threatening to throw out 10 directors of Yahoo creating an inevitable take over.

Yahoo has postponed its deadline from Friday to 10 days after announcing its yearly meeting.

Yahoo has no drastic plans of resolving meetings and closing deals before the release of it’s April of it’s first quarter earnings as revealed by a source that is close to the company. However the source did not want to be named as he claims that he is not authorized to release such information.

The saga goes on and is very much anticipated. Microsoft has made its bold move and is confident of its offer making Yahoo a bit on the edge as it is still in hopes of good earnings in the first quarter perhaps making ends meet to achieve good outcome.