Advertising, ad campaigns, ad agencies, and the people that make it happen

As more details have come out in the last 24 hours, it's obvious that Microsoft has been trying to sweet talk Yahoo into a partnership since 2006, culminating in a merger proposal in early 2007, which Yahoo rejected because as I said yesterday, they were confidant they could turn things around. Microsoft then made one more polite offer after Yahoo reported its awful numbers Tuesday, then it went public saying that the landscape had changed and requiring drastic action, namely a takeover offer of $31 a share, a 62 percent premium over the stock's last close. Microsoft CEO, Steve Ballmer wrote, "Today, the  market is increasingly dominated by one player who is consolidating its dominance through acquisition. Together, Microsoft and Yahoo can offer a credible alternative for consumers, advertisers, and publishers." Yahoo responded that it would consider the offer. Yahoo has a "poison pill" provision stating that no single shareholder can acquire more than 15 percent of the company without board approval. Should the board reject Microsoft's offer, Microsoft could up the hostility level by launching a proxy contest. And if someone else, such as Google or a private equity company (and we are already hearing rumors that this is a distinct possibility) jumps into the bidding, things will start to get really interesting.

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Never argue with the big dogs!