5 Reasons Why Yahoo Should/Shouldnt Take Microsoft Up On Its Offer

Reasons To Say Yes

The $44.6 billion offer is 62 percent above Yahoo’s current valuation.

It’s a good deal for shareholders, who will almost certainly pressure Yahoo into saying yes.

Neither Yahoo nor Microsoft can compete against Google alone.

Microsoft’s financial and management muscle give Yahoo the best chance of recovering its position in the search and information portal business.

The deal promises (promises) to keep key Yahoo personnel.

Reasons To Say No

Microsoft ownership of the Yahoo brand will likely turn off many long-time users who are wary of Microsoft’s unrelenting market expansionism and liked Yahoo-

Integration nightmare due to different underlying IT architectures.

The deal could get killed by the EU.

Yahoo products such as Flickr and Zimbra will wither under Microsoft’s “care.”

Yahoo’s corporate culture will get consumed.