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So, What Now for Microsoft and Yahoo? More Fancy Footwork

I’m no M&A expert, but I’ve seen enough not to be surprised by Yahoo’s apparent, imminent rejection of Microsoft’s offer to buy the company. So why are so many people wondering why Yahoo would make a counteroffer?

Really, why would they do anything else? They may get sued if Microsoft drops the deal, but that seems unlikely. If they meekly accepted Microsoft’s offer, however, they most certainly would get sued for not at least trying to do better. It seems like Yahoo has little to lose in engaging in negotiation, if indeed that’s what it’s doing. (Update: And now, it may have a new negotiating tactic: a possible acquisition of AOL.)