The collapse of the planned Microsoft takeover of Yahoo
is good for both companies, according to analysts.
Microsoft withdrew its takeover offer for Yahoo at the weekend
after the internet firm continued to hold out for a higher
offer.
Microsoft refused to up its bid and has also shelved plans for a
hostile takeover of Yahoo, something it had threatened if its offer
was refused.
George Colony, CEO of analyst Forrester, said, "It's good for
Microsoft that it didn't buy Yahoo: now it has to reform itself.
Yahoo and Microsoft would have been a disaster as the best and the
brightest from Yahoo would have gone to Google.
"The culture clash would have been destructive and would have
put Microsoft back in the sights of the regulators. And Yahoo
wouldn't have helped Microsoft with its biggest task at hand, which
is adapting to the emerging internet software model."
Forrester analyst Charlene Li said, "With the Microsoft
acquisition threat fading, Yahoo has been given a reprieve, but it
must explain and execute on a strategy that supports its belief
that the company is worth more.
"Otherwise it faces another round of acquisition attempts and
shareholder revolt. Yahoo's web strategy is sound but it has been
muddled due to poor communication and tactical steps."
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