Microsoft offers Yahoo a take it or leave it deal…Again

Julian Sharpe | 2:21 pm | July 15, 2008 | MSN, News, yahoo

Microsoft reacted angrily at claims from Yahoo that the latest offer for the Microsoft was final and non-negotiable. The continuing battle of wits between the two internet giants increased further yesterday, when Yahoo rejected an offer over the weekend by Microsoft, and called it a “take it or leave it” deal.

Microsoft returning quotes were that the offer was not final, but a way in for more negotiations.

“This discussion has been mischaracterised as a ‘take it or leave it’ ultimatum, rather than a timetable in order to move forward to intensive negotiations,” a company statement read.

Microsoft said the latest offer, which had been more search-focused, had been prompted in part by conversations at the top level between Yahoo chairman Ray Bostock and Microsoft CEO Steve Ballmer.

But Yahoo are quoted as saying that the proposed deal was not as financially favourable as the one it recently agreed with Google.

Rogue Yahoo! shareholder Carl Icahn, who yesterday submitted his final list of proposed candidates to replace the Yahoo! board, said Yahoo!’s rejection of the new deal aimed to “distort, omit and twist events and facts in the manner that Yahoo! has done.”

Meanwhile, research from US search specialist Search Ignite has suggested the cost of a click on Yahoo! will increase by 22% if Google sells the ads.