After Microsoft’s latest proposal to only buy parts of Yahoo!, stocks of the company have risen by almost 2% in premarket trading.
Similarly in February, when Microsoft initiated an earlier deal Yahoo!, stocks shot up from $19 to $28 the next day.
However at the beginning of May, when Microsoft walked away from negotiations, Yahoo! stocks fell by a dramatic 19% while Microsoft’s stocks rose by around 3%. Over the last month Yahoo! stocks have slowly been rising back to around the $25 mark.
Microsoft has since moved away from previously more forceful tactics to dealing more openly with the company, contributing to the rising stocks.
Another factor behind this increase in stocks is Microsoft’s interest of now only attaining parts of Yahoo! such as the search technology.
In the ongoing conflict between Microsoft and Google, Yahoo! has become a surrogate in the war between the two internet giants. With both the companies looking to take advantage of Yahoo!’s user base of over 500 million, and success in social media news, email and display advertising.
At this point it seems as though Yahoo! will “…emerge from this battle stronger than ever, with a more defined direction and proven leadership in Yahoo driven content distribution and display ad revenue partnerships.” As speculated by Loren Baker from Search Engine Journal.
No doubt this won’t be the end of this long running saga; we will keep you updated with any further developments. Feel free to leave a comment on your thoughts on the issue.