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    Microsoft’s Hardball with Yahoo Violates Rule Number One

    By
    Eric Lundquist
    -
    April 7, 2008
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      Eric LundquistOne of the unwritten rules of technology takeovers is that hostile takeovers are fraught with peril. When a company’s value is its intellectual capital and that capital walks out the door at the end of each workday, taking a heavy-handed approach to acquisition seems wrong.

      In any case, Microsoft’s Steve Ballmer has now put Yahoo on a three-week deadline. Yahoo seems to be responding by saying they will talk–but they’d like to see a bigger bag of money on the table.

      It is tough to see how this open-acquisition warfare has any big upside–except for the bloggers getting page views by tracking the blow-by-blow prizefight.

      Eric Lundquist
      Since 1996, Eric Lundquist has been Editor in Chief of eWEEK, which includes domestic, international and online editions. As eWEEK's EIC, Lundquist oversees a staff of nearly 40 editors, reporters and Labs analysts covering product, services and companies in the high-technology community. He is a frequent speaker at industry gatherings and user events and sits on numerous advisory boards. Eric writes the popular weekly column, 'Up Front,' and he is a confidant of eWEEK's Spencer F. Katt gossip columnist.

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