Yahoo and Microsoft: On Again, Off Again Love Affair

Yahoo is turning out to be the Hillary Clinton of the web these days: running a campaign to save itself that is on its last legs and refusing to stand down and let the more stable web candidates win. It doesn't help matters that it is being pursued in the most schizophrenic manner possible by Microsoft, or that its own shareholders have long since had it with the shenanigans on both sides.

It is hard not to grow increasingly bored with the tug of war as Microsoft and Yahoo seemingly battle to the death over control of the web institution. When Microsoft first started sniffing around Yahoo, months ago, I remember being up in arms over it. I thought Microsoft, with its complete lack of understanding about the social web and how it works, would be the worst possible candidate for ownership of the Yahoo family of sites.

I still think that. I still think Microsoft and its tendency to see all things from a standpoint of ownership and exclusion would be the worst thing to happen to Yahoo (and by extension Flickr, del.icio.us and the rest of the Yahoo family). But in the end I am so tired of reading about the deal in the news I might swallow this evil merger whole with my lips zipped if it would only make it stop appearing in my feed reader.

Are there companies that are a better fit for Yahoo? Absolutely: Google, AOL and NewsCorp all come to mind immediately. However, in the last few months those companies have had ample time to step up and work out bail with Yahoo, and none have taken the bait. The closest was Google with its recent ad revenue and search arrangement with Yahoo, and even then it isn't a substantial bail out plan, but a simple search engine and ad serving plan that was hashed out.

The web as a whole is leaving Yahoo to twist in the wind, for whatever reason. This is rapidly making Microsoft's hostile takeover plan look appealing, in spite of it wresting ownership from the hands of Yahoo and Yahoo users and putting it into the hands of the company that brought us Internet Explorer - the browser that hasn't been internet standards compliant in.. well, ever.

The latest offer from Microsoft came after the giant bailed out on negotiations last week and after Carl Icahn threw a hissy fit over the way Yahoo was handling the takeover bid. The new statement from Microsoft takes a jab at the Yahoo board of directors and its disinclination to listen to the wishes of its shareholders by offering to negotiate with just about anyone who can prove they can make decisions on the company's behalf:

“In light of developments since the withdrawal of the Microsoft proposal to acquire Yahoo! Inc., Microsoft announced that it is continuing to explore and pursue its alternatives to improve and expand its online services and advertising business. Microsoft is considering and has raised with Yahoo! an alternative that would involve a transaction with Yahoo! but not an acquisition of all of Yahoo! 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 and discussions that may take place with Yahoo! or discussions with shareholders of Yahoo! or Microsoft or with other third parties."

At this point, the deal is no longer a straight up hostile takeover bid (or at least is isn't one on paper). Microsoft reserves the right to change that in their statement, but still, this could be Yahoo's opportunity to stop resisting a chance to survive their financial woes and accept help. If nothing else, it is a chance for the rest of the internet community to stop having to read about Microsoft and Yahoo and their star crossed love affair for a while - a respite I'm sure we'd all appreciate.