What two things empower every company? That’s easy: customers and employees. But somehow Microsoft seems to be forgetting that as it grows more aggressive in its plans to take over Yahoo. With enough disgruntled employees, Yahoo may come apart at the seems leaving Microsoft with a series of loose threads connected to hidden treasures.

But then, Microsoft never was much for tact. Instead, the company has always turned to the old and reliable methods of bribery and threats. After all, that’s how it has managed to acquire some of its most valuable technologies and achieve its strongest market positions.

Now that Microsoft’s deadline has come and gone for Yahoo to take or leave its offer there are some possibilities moving forward. “It can call it quits. It can sweeten its offer in hopes that Yahoo! will agree to a friendly merger. It can take its proposal directly to Yahoo! shareholders. Or it can launch a proxy fight to replace Yahoo!’s board,” according to Forbes.

Though Yahoo has countermeasures against takeovers, “it’s conventional wisdom that a poison pill isn’t usually effective in stopping a takeover with a hefty premium.”

With Yahoo talking to search king Google (so far an unstoppable Internet monstrosity), Microsoft isn’t likely to let this deal slow down much, especially since it’s been pursuing Yahoo for almost 2 years.

“Time is of the essence. Every day that goes by, Google gets better and better and takes more [market] share.”

Yahoo has until July of this year before it must hold elections for its board, so unless Microsoft sweetens the deal, it may have several months to wait.

The part Microsoft may not be considering though, is its impact on current Yahoo employees who may lose interest in working for a company without its own identity.

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Entry was posted on Tuesday, April 29th, 2008 at 1:16 am under Microsoft, Yahoo!.

Read more entries by Matt Jansen.
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