Microsoft Throws Gauntlet Down At Yahoo

Microsoft has been attempting a hostile take over of Yahoo for a little over three months now, and Yahoo has been resisting with a variety of frantic tactics. Recently Yahoo even got together with Google on ad placement, and has approached every one from News Corp to AOL in its attempt to stay independent. This “anyone but Microsoft” approach hasn't paid off yet for Yahoo, still under the laser beam focus of Microsoft's desire for all of the web presence with little of the work.

This week Microsoft upped the ante in the battle for control of Yahoo. It threw down the gauntlet, giving the company until Saturday to begin real negotiations or suffer the consequences of a proxy fight for control. Yahoo's shareholders have already made it clear they side with Microsoft. Yahoo has made it clear they want to avoid Microsoft acquiring them at all costs.

Yahoo is still in talks with AOL for a partnership arrangement of some kind to fight the Microsoft bid. They had approached News Corp in the past, but News Corp has already stated that they would not side with Yahoo against Microsoft due to the potential expense (which seems to leave them open for an alliance with Microsoft, especially in light of remarks made by Murdoch this week). Yahoo also continues its trail ad placement arrangement with Google.

Yahoo has a contingent participating in Web 2.0 Expo this week, showcasing its Web 2.0 properties such as Flickr and Yahoo! Live. The company has not made an official statement in response to Microsoft's demands yet, three weeks after the initial gauntlet was thrown and mere days before the deadline set by Microsoft expires. It will be interesting to see if Microsoft puts its money where its mouth is and takes the battle to the board for final resolution.