The empire strikes back
Further evidence that Yahoo grossly over-played its hand in the failed negotiations with Microsoft (MS) emerged Monday, when MS announced that starting next January, Live.com will replace Yahoo as the default search engine in Hewlett-Packard (HP) computers for USA and Canada.
HP is the world’s largest PC maker. Number two Dell, which installs Google web and desktop search software on its consumer computers, said it “was open to alternative partnerships” when the deal with Google expires in 2009.
HP will also to install copies of Internet Explorer with an extra Live Search toolbar linked to HP services such as its Snapfish digital photo printing site. The toolbar will be powered by Silverlight, MS’s answer to the near-monopoly of Adobe’s Flash.
This comes on the heels of several other deals made by MS to promote Silverlight, which is available for Macs and Linux as well, and has been adopted by Nokia for mobile phones.
Back story on Microhoo
On a related note, yesterday a Delaware judge unsealed details in a shareholder lawsuit against Yahoo for blocking MS’s bid. The details include a $2 billion “poison pill” giving all Yahoo employees cash and accelerated stock grants in the event of a takeover and a change in their jobs.
The details will be grist to Carl Icahn’s mill in his proxy fight to replace the Yahoo board, hoping to tempt MS to return to the table. Given the deal with HP and the clamour for Windows from the nettop OEMs, any future offer for Yahoo is likely to be less generous than the original bid.
Windows for nettops
As an encore, MS announced yesterday it is providing Windows for nettops, which Microsoft categorises as ultra low-cost desktop PCs, in response to strong customer demand. MS partners also wanted it because they already know how to build and support systems powered by Windows.
“We have seen much demand for Windows on the Eee PC,” said ASUSTek CEO Jerry Sheen. “It’s great that Microsoft is addressing this customer demand and providing a Windows solution on these devices, which will provide a familiar computing experience.”
