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June 12, 2008

Microsoft is Doing Some Spinning

Microsoft is doing some heavy-handed spinning of its new decision to not buy Yahoo at any price. Here is Microsoft from today's release:

As stated on May 3rd and reiterated on May 18th Microsoft was not interested in rebidding for all of Yahoo!.

Really? That's interesting, because I don't remember Microsoft ever saying anything like that. I remember it talking about alternatives, and it complaining that Yahoo turned down its $33 offer, but I don't remember Microsoft saying it wasn't interested in rebidding.

Then again, I have a poor memory, so let's go to the tape. Here is the relevant passage from the May 3rd release:

... your apparent plan to pursue such an arrangement in the event of a proxy contest or exchange offer leads me to the firm decision not to pursue such a path. Instead, I hereby formally withdraw Microsoft’s proposal to acquire Yahoo!.

Yo Steve, to "formally withdraw" one offer is not the same as never rebidding.

Let's move forward to the May 18th release, however. Maybe that's when Ballmer tipped his hand about never rebidding. Here is the relevant passage:

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.

Yeesh. Not only is Ballmer not saying he won't rebid, he categorically reserves the right to rebid in future. Where am I supposed to get "not interested in rebidding" from this? I am no English major, but I get something closer to the opposite.

While there are clearly issues at Yahoo requiring a change of leadership, Microsoft is, if anything, in more need of change. This sort of heavy-handed spinning of what has happened over the last few months should be offensive to any semi-sentient being.

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