Microsoft resonds to Yahoo’s Rejection

The battle continues, Microsoft responded today to the rejection they recieved from Yahoo!.  What will be the next move in this game?  Included is the response from Microsoft:

“It is unfortunate that Yahoo! has not embraced our full and fair proposal to combine our companies. Based on conversations with stakeholders of both companies, we are confident that moving forward promptly to consummate a transaction is in the best interests of all parties.

We are offering shareholders superior value and the opportunity to participate in the upside of the combined company. The combination also offers an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market.

A Microsoft-Yahoo! combination will create a more effective company that would provide greater value and service to our customers. Furthermore, the combination will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising.

The Yahoo! response does not change our belief in the strategic and financial merits of our proposal. As we have said previously, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal.”

I can’t even pretend to know what the outcome of thisYahoo-Microsoft story will be, but I do know that in this time of limbo, people at both companies are confused and in near-paralysis as this saga continues to drag itself out.  I almost feel bad for the people who work for Yahoo right now.  The major layoff they went through earlier this week has done major damage to the morale of the entire organization.  Not only are those who got layed off distraught, but those who are still onboard are very nervous about the prospects of their future (including one poor engineer who is on H1B and in risk of being deported of he gets layed off).   It must be very unnerving to not have a solid foundation on which to continue your career.  And how can these Yahoos be expected to be creative and thoughtful and focused on building better products than their competitors when they are way too busy watching their backs to ensure nobody fires them or exchanges their business cards for ones that read Microsoft.  It really doesn’t make for an optimal work environment.

I’ve already been contacted by several very talented Yahoo pros who are ready to depart from the chaos.  My doors are open for any others who are great at what they do and interested in exploring the market.