The deal that wouldn’t die

Commentators, having long since run out of useful things to say about YHOO+MSFT, only bemoan how it continues to drag out. In reality, deals of this size do tend to take a while. Microsoft (and specifically Ballmer) aren’t walking. Why?

Because they need Yahoo. They need search share–the deal with Google only puts on more pressure. But they also need a non-schizophrenic brand under which to put all their audience attractors. In short, I’d say MSFT has been terrible at tactics (and non-intimidation-based negotiating), and YHOO has been mediocre at strategy and terrible at execution. Maybe they are meant for each other…

Prediction: by the end of the year 1) some kind of deal happens, and 2) Yang is out as CEO. $28.

Disclosure: I still hold long YHOO shares

Disclosure: The irony of this post is not lost on me

-m

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