Is Microsoft giving up on Yahoo! or just stalling?

Grudun answered one year ago …

Microsoft is definately stalling. Right now it is a wait and see game for them. There are a lot of things that could happen at Yahoo! that would cause them to stumble and beg for the current offer. If Yahoo!'s major holders get any indication that the results for the last quarter were a one off and not an indication of a turnaround they will start quietly talking to Microsoft indicating their quiet support of a hostile big which is what Microsoft is hoping/waiting for. But there are things that could start going right for Yahoo!. They are getting their name out in a lot of co-branded commercials(a ending line of more and more commercials is "To find out more search XXX at Yahoo.com") and are improving key content on their sites. Also there is the question of whether the stategic alliance with Google will go through increasing their ad sales rate(but Microsoft is definately working to prevent/delay this).
So overall there is a good shot of Yahoo! making a move without Microsoft but if it stumbles it will give Microsoft the opportunity to buy it. Also this gives Microsoft time to build up cash so they don't need to borrow as much money to complete the purchase(a first in Microsoft history a sign of how far they have come from the Bill Gates days).