Microsoft-Yahoo: Desperation Sets In

The latest talks clearly suggest Microsoft lacks a Plan B to compete with Google in search, while Yahoo is feeling the heat from Carl Icahn
Microsoft Chief Executive Officer Steve Ballmer. David Hecker/AFP/Getty Images

When Microsoft announced May 3 that it was dropping its $47.5 billion bid for Yahoo (BusinessWeek.com, 5/3/08), executives said the company had "moved on." Clearly, the company has barely budged.

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