Here Comes the Big Dog

Once we thought the battle between Microsoft and Yahoo was over, here comes financier Carl Icahn ready to start a proxy battle to force Yahoo to renegotiate with Microsoft. As you may know, Yahoo turned down Microsoft's bid for the company, which was $33 per share. Microsoft decided to walk away instead of undergoing a nasty hostile takeover. Icahn says that Yahoo's investors lost out when some Yahoo directors "got in the way" of the deal (I think that sentence is funny). This could turn ugly quickly considering that Icahn is determined to make this deal happen, and he is known for getting what he wants. Microsoft, of course, would love to see this deal fall through. Their internet presence has been burdened by the domination of Google; such a deal would bring lots of ad revenue and would beef up their internet territory. I assume they walked away from the deal before as to avoid a costly proxy battle that requires millions of dollars and to avoid the negativity involved with such an undertaking. A combined Yahoo-Microsoft might be good for internet users. Google has had free range for years with little to no competition. A Yahoo-Microsoft deal would create an internet powerhouse more apt to compete with Google. A little more competition is usually a good thing for consumers.

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