As I said in a previous post when everyone considered Microsoft gave up, it lost a battle, but not the war. Such a transaction is not a simple business deal, to make an offer and wait for an answer. It implies a very complex strategy over several years. So, a first refusal from Yahoo! was predicted and considered as a factor in the buyer’s strategy, not as a definitive decision.
So, the next move in the Microsoft’s strategy is now to go on the partnership with Yahoo! (involving Yahoo carrying search advertisements from Microsoft, the Wall Street Journal said today), taking also into account to buy the full companies in the future.
A second battle-front was open by Microsoft through some investors of Yahoo!, especially Carl Icahn.
“Microsoft is not proposing to make a new bid to acquire all of Yahoo at this time, but reserves the right to reconsider that alternative depending on future developments,” says Microsoft.
Microsoft says that there will be a “major new initiative“ in its search engine technology on May 21.