Monday, May 05, 2008
Microsoft's decision to pull out of its offer for Yahoo is not surprising. It was clear some time ago there were diminishing returns from the overly long courtship. In a posting on April 24, I noted that it was time for the companies to act because the PR battle had gone on too long. So, Steve Ballmer, Microsoft's CEO, has pulled the offer and now, wounded speculators and shareholders are screaming. Ballmer needs another PR campaign quickly to explain why he backed out and why it took so long for the decision. Yahoo on its part will need to do the same. A failed merger has as much need for communications as a successful one.