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Ballmer Bashers Can't Have It Both Ways

Posted May 05, 2008 01:59pm EDT by Aaron Task in Investing, Internet, Newsmakers, Venture Capital, M and A, IPOs
Jerry Yang isn't the only tech exec in the hot seat today.

The (apparent) demise of the Microsoft-Yahoo negotiations has also brought a lot of criticism down on Steve Ballmer, including reports in both Valley Wag and Tech Crunch that this episode could cost Ballmer his job.

Clearly, Ballmer made some tactical errors - most notably threatening to lower the bid for Yahoo and then shortly thereafter reversing course and letting it be known Microsoft would pay more than $31 per share for Tech Ticker's parent.

Also, The Wall Street Journal reports on a Microsoft offsite in March where Ballmer apparently confused some senior Microsoft executives about his true intentions with Yahoo.

Arguably pursuing Yahoo in the first place was a strategic error on Ballmer's part. Critics say Ballmer is obsessed with fighting Google over search, a war it has already lost, when the company should instead be focused on how to protect its core Office and Windows businesses given the shift to cloud computing.

Yes, the onus is on Ballmer now to come up with a viable Plan B for Microsoft's online effort. But if he was a fool for offering $31 a share for Yahoo, shouldn't Ballmer be praised, rather than skewered, for refusing to pay more and walking away?

36 Comments

andrewm
andrewm - Monday May 05, 2008 02:24PM EDT

Ballmer knows what he is doing. You'll see.

BEFman
BEFman - Monday May 05, 2008 02:35PM EDT

That Ballmer's a clown that needs to get fired and let some competent new blood in to revitalize Microsoft.

michael B
michael B - Monday May 05, 2008 02:46PM EDT

ballmer getting fired! come on he made no mistake here. yahoo was just proven to not be worth any bid that was offered. it just showed today in the stock hit. it's worth les than $20. mor like $15 based on it's rev loss

Guy B
Guy B - Monday May 05, 2008 02:53PM EDT

Like the Bush administation, Microsoft has a bad reputation according to their peer groups. This represents a terrible handicap for accomplishing much in the future, therefore both CEOs should resign for the benefit of their respective organizations

Yahoo! Finance User
Yahoo! Finance User - Monday May 05, 2008 02:54PM EDT

I wanted him to win just so they could burn all that cash on something they have no idea how to use effectively.

Zig Z
Zig Z - Monday May 05, 2008 02:55PM EDT

Ballmer proved he's smarter than Yang by a long shot.

Yahoo! Finance User
Yahoo! Finance User - Monday May 05, 2008 02:58PM EDT

Ballmer has been the most overrated CEO in America for quite some time. He has made critical strategy and organizational mistakes on a number of occaions over the years and survived becasue he is FOB. Snart man indeed, but a buffoon. He hires great people to get MSFT to a formidible online presence, but push most out - its always been his way for the highway. Moving Ballmer to pasture would be the best single factor to try to get MSFT off the dime for the online enviornment. YHOO's blisters aside - good mgmt would have made it be a successufl marriage - but certainly Ballmer would have blown it.

whackyboy
whackyboy - Monday May 05, 2008 03:02PM EDT

Someone has taken 'saveyahoo.com' - which I was thinking of registering few days back and starting a blog about. But it ain't necessary anymore ... glad for MSFT pulling out at the right time, else it would have given birth to too many illegitimate children...

philips
philips - Monday May 05, 2008 03:03PM EDT

When 2 giant egos clash this is the result no winners only losers

Yahoo! Finance User
Yahoo! Finance User - Monday May 05, 2008 03:06PM EDT

so... why can't balmer bashers have it both ways?

Yahoo! Finance User
Yahoo! Finance User - Monday May 05, 2008 03:15PM EDT

Whether Ballmer is right or wrong, he deserves respect for putting company's interest before his ego (especially because its huge !).

BATO
BATO - Monday May 05, 2008 03:18PM EDT

After the dust settles. The fact that Yhoo survived the onslaught of wallstreet and still has its head above water, CREDIBILITY will be the name that the two ceo will have to live by. MR. Yang all throughout the game has maintained the same stance of getting what he deemed as the true value of his company while Mr. Ballmer on the other said at fist he won,t raise the bid then threatens for a hostile takeover then according to him he raised his final bid to $33.00!! Who will be more believable next time?Will wallstreet believe him nexttime?

Ramesh
Ramesh - Monday May 05, 2008 03:22PM EDT

I believe Yahoo execs were too greedy. It is very difficult to blame MicroSoft. They offered more than what yahoo was worth. Let us see how Yahoo exec's show their performance and justify the value they had in mind.

Yahoo! Finance User
Yahoo! Finance User - Monday May 05, 2008 03:29PM EDT

I think this was a tactical move by Ballmer and some Wall Street pals. They knew Yahoo's price would tank after the news. So now they wait and hope Yahoo's financials get worse, then Yahoo is forced to accept the bid (at an even lower price). This is not the end by any means. It was a way to avoid a proxy fight and keep the acquisition price lower. The last thing you want is a proxy fight. That just gets ugly and expensive.

Martial
Martial - Monday May 05, 2008 03:33PM EDT

I am wondering if the boys at MSFT and Yahoo are still competent to run huge companies. When reading the saga of the buy out, you fill that you are dealing with people with big egos and small ..... It is sad and make me wonder if I should keep my money with either company.

Houyhnhnm
Houyhnhnm - Monday May 05, 2008 03:41PM EDT

As an enthusiastic Yahoo! user, I'm just relieved the Evil Empire monopolists didn't swallow Yahoo! and morally oblige me to switch to a different portal. As an investment, I much prefer Google to either of these for various reasons, but I don't care for Google as a portal.

Justin S
Justin S - Monday May 05, 2008 03:44PM EDT

Anyone who thinks ballmer is to blame is ignorant.. YAHOO is not worth over 31/share. watch where yahoo falls in the next few months. it will be in teens by mid summer.

Yahoo! Finance User
Yahoo! Finance User - Monday May 05, 2008 03:45PM EDT

Funny how many "experts" have such strong opinions on issues they will never get to face themselves. Balmer and Yang may both be arrogant but only one of them really needs to be concerned at this point .......

Brian
Brian - Monday May 05, 2008 04:04PM EDT

Hello??? Ballmer is one of the largest MSFT shareholders, therefore his interests are aligned with the shareholders as he showed by not buyingYHOO at all costs. End of story!

Patrick T
Patrick T - Monday May 05, 2008 04:06PM EDT

I don't understand what the fuss was all about. Microsoft went after Yahoo to bolster their internet search business. I believe he definitely offered Yahoo more than they are worth and Yahoo had the right to ask for more (being greedy that they are) and so Microsoft walked away. Time will tell if Yahoo truly has a plan to turn around their fortunes but a lot of people investing at Microsoft are breathing a little easier this deal fell thru. So more on, no need to bead the dead horse.

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