Microsoft will hold firm on its position and its offer to acquire Yahoo: take the money or we’ll simply move on without you.

The chest-puffery began with Yahoo’s Q1 2008 financial report, issued last night after the markets closed. Jerry Yang called it proof Yahoo is on the way to double-digit cash flow in 2010.  The  addition of a pair of one-time items boosted Yahoo’s cash flow and free cash flow in their first fiscal quarter, something that did not go unnoticed by Microsoft’s bankers, we think.

Steve Ballmer said again what he has mentioned before, that they will not increase the original bid to takeover Yahoo. Per Bloomberg:

“We are offering a lot of money,” Ballmer said today at a Microsoft conference in Milan. “If Yahoo’s shareholders like it, that’s great. We are prepared to go forward without a merger with Yahoo.”

Bloomberg also noted shares of Microsoft have declined 15 percent this year. A lot of that happened after their unsolicited takeover bid landed on Yang’s desk.

Microsoft set a deadline for this Saturday for Yahoo to take the deal or face a hostile grab for control of its board. The groundwork for an interesting summer is in place for the Internet industry.

Posted on Wednesday, April 23rd, 2008 at 10:59 am. Permalink