[TineSeign]

UPDATE: Microsoft's Play For Yahoo Could Distract From Enterprise Market

February 28, 2008: 12:46 AM EST

http://money.cnn.com/news/newsfeeds/...LINE000014.htm


SAN FRANCISCO (Dow Jones) - When Microsoft Corp. bought a little-known business software firm in Fargo, North Dakota about seven years ago, a PeopleSoft Inc. manager sent a frantic e-mail to a colleague saying, "YIKES."

For companies like PeopleSoft, Oracle Corp. and SAP, Microsoft's (MSFT) acquisition of Great Plains Software in late 2000 was an alarming sign: The world's No. 1 software maker was moving more aggressively into their turf, the highly-lucrative market for business applications.

"This is huge news and should have all of us in the financials world shaking in our boots," PeopleSoft general manager Renee Lorton told executive vice president Ram Gupta in her e-mail. Microsoft Chairman Bill Gates, she added, " has a gun at our and Oracle's back."

Now, Microsoft's latest acquisition move, a bold bid to buy Yahoo Inc. (YHOO), has some analysts wondering if the tech giant has a gun aimed at its own foot.

Yahoo's board of directors has rejected the offer, initially valued at $44.6 billion, although Microsoft has indicated that it still plans to pursue a merger.

While many analysts say the marriage would expand Microsoft's Web presence and boost its online advertising revenue base, some see it as a distraction in the company's pursuit of a huge and potentially bigger market for software companies use to run their businesses.

[SigNeewfoew]

Microsoft withdraws bid for Yahoo
Software maker walks away after it says it raised its offer to $46 billion - says economics demanded by Yahoo 'do not make sense.'
By Mark M. Meinero, CNNMoney.com assistant managing editor
Last Updated: May 3, 2008: 10:46 PM EDT

NEW YORK (CNNMoney.com) -- Microsoft Corp.'s pursuit of Yahoo Inc. ended abruptly Saturday when the world's largest software maker withdrew a sweetened $46 billion offer and said it would not make a hostile bid for the Internet company.

Microsoft said the breakdown came despite having raised the bid to $33 a share, or $5 billion above what it said was the current value of the offer and a 70% premium compared to its original offer.

The offer was valued at $31 a share when it was made in January. Yahoo stock closed Friday at $28.67 a share.

"After careful consideration, we believe the economics demanded by Yahoo (YHOO, Fortune 500) do not make sense for us," said Microsoft (MSFT, Fortune 500) CEO Steve Ballmer.

In a letter to Yahoo Chief Executive Jerry Yang, Ballmer said that Yahoo wanted at least another $4 a share, or $5 billion in value, added to the deal, bringing it to at least $37 a share.

http://money.cnn.com/2008/05/03/tech...ex.htm?cnn=yes

YAY! At least MicroSadists won't have Yahoo to dork up too.