Yahoo rewires as Microsoft muscles in

25 April 2008

Microsoft has warned Yahoo that it is running out of time to avoid a hostile takeover.

Microsoft's chief financial officer Chris Liddell said on Thursday that "speed was of the essence" in completing the deal on the table: "Unfortunately, the transaction has been anything but speedy and has been characterised by what would appear to be unrealistic expectations of value," he said.

Earlier this week, Yahoo posted better-than-expected financial results, but Microsoft refused to improve its $44.6 billion offer for the company.

Meanwhile, Yahoo has revealed more about its ambitious plans to open its platforms to developers and 'rewire' itself in line with social media objectives.

Speaking to an audience at the Web 2.0 Expo conference in San Francisco, Yahoo's chief technology officer Ari Balogh said that they were not building a new social network.

"We are building social into everything we do," he said.

The move has been applauded by Charlene Li, of digital analysts Forrester.

"For me, this is a significant step forward in the next phase of social networks and the social Web," she wrote in a blog post.

"To Yahoo!'s credit, they have been focused – as much as a company can be under the circumstances – on executing on a strategy initiative that started last year. Regardless of how the Microsoft/Yahoo! dance turns out, Yahoo! will be setting a precedent for other portals and social networks to follow."

Category: MSN, Social media, Yahoo