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March 3, 2008 7:48 AM PST

Backdoor approach to a Microsoft-Yahoo deal?

by Dawn Kawamoto
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Microsoft has tried the front-door approach in wooing Yahoo. But, pssst, the backdoor is unlocked.

The software maker, in its pursuit of Yahoo, has tried knocking on the Internet search pioneer's front door, then banging with its unsolicited bid, and now it's two weeks away from using a battering ram, should the deadline remain fast and firm to name an opposition slate to Yahoo's board.

But the backdoor has plenty of potential.

Yahoo's nonexecutive board chairman, Roy Bostock, and Microsoft director Charles Noski both serve on the board of investment bank Morgan Stanley. With Morgan Stanley's annual shareholder meeting coming up next month in New York, it seems to be as good a time as any for Bostock and Noski to be passing notes. (Just keep them away from the watchful eye of Morgan Stanley's chief executive, John Mack, whose firm is representing Microsoft in its Yahoo bid.)

And in America's heartland, Microsoft's Bill Gates and Yahoo President Sue Decker could break bread, or rather, dine on a juicy steak, while attending the shareholder meeting at Nebraska-based insurance and investment company Berkshire Hathaway, at which both serve as board directors.

There's plenty of time for Bill and Sue to hang out. The shareholder meeting, scheduled for the first weekend in May (PDF), is a multiday affair that gives investors the option of also sipping on cocktails at fine-jewelry store Borsheims, a Berkshire Hathaway holding, and dining at Gorat's Steakhouse.

Full coverage
Microsoft's big bid for Yahoo
Click here for the latest on the software giant's attempt to buy the Net pioneer.

And who knows, maybe Warren Buffet, Berkshire Hathaway's chief executive and a close friend of Gates, may make the perfect go-between for the two companies. After all, Buffet's advice is closely followed by the financial press, investors of high net worth, and institutional investors.

Meanwhile, in Hannover, Germany, on Monday, Microsoft CEO Steve Ballmer made a pitch for the existing offer.

"The deal makes sense, with the price and structure we announced. We hope it becomes reality," he told reporters, according to the Associated Press.

CNET News.com's Ina Fried contributed to this report.

Dawn Kawamoto covers enterprise security and financial news relating to technology for CNET News. E-mail Dawn.
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I hope Microsoft gets Yahoo!
by naterandrews March 3, 2008 8:21 PM PST
Yahoo! culture will (hopefully) give Microsoft a new "heart". Right now, people feel either indifferent about the giant, or they outright loathe them.

If Yahoo!'s management were to infuse itself into Microsoft, they could push the envelope (not only in terms of new acquisitions but with new initiatives that are pro-consumer/user).

I also remember the days that I could read about Google launching new products are services every week. Now, while Eric Schmidt may have stated he wanted to slow down new app production and push the features and usability of each, I would still like to see more apps at the same time. With a united Yahoo!/Microsoft, this could push more innovation and product launches from both companies while at the same time preventing these behemoths from resting on their laurels!

While I wont argue the virtues and demerits of Microsoft here, I will say that they (Microsoft) are very good at creating a good ecosystem-

Office ties in very well with Windows
Windows and IE, WMP (Albeit controversially)
Games for Windows + Windows
Etc.

these are great examples of what power they have towards setting standards and moving millions of users towards one single direction that has helped millions of people. (Imagine the alternative- Windows, Mac OS, Linux, Dell OS, Google OS, all with the same market shares- compatibility issues with software and hardware alone would harm the industry and prevent growth and consumer confidence)
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