The real sticking point with Microsoft/Yahoo!

With news last week of a renewed overture by Microsoft, it's possible that Ballmer may be softening on his not-a-penny-for-the-point position

Microsoft's desperate struggle to acquire all or part of Yahoo! has gotten hung up not on disagreement over a fair price for the latter's online advertising operations, sources say, but rather the value of Yahoo!'s iconic exclamation point.

"Ballmer just won't budge on this, uh, point," says one source close to the negotiations. "He told me, 'Hell's bells, you can look up 'exclamation point' in any dictionary and see a picture of me next to the definition. Why should I pay a penny for theirs?' "

Yahoo! isn't asking for pocket change. When Microsoft earlier this month pulled the plug on its offer of US$47.5 billion, or US$33 per share, Yahoo! was reportedly demanding at least $1.50 per share more -- about $2 billion -- exclusively for the exclamation point. This despite the fact that Yahoo!'s founders only added the mark after discovering the unadorned word Yahoo had already been locked up by a barbecue sauce maker.

With news last week of a renewed overture by Microsoft, it's possible that Ballmer may be softening on his not-a-penny-for-the-point position.

Experts insist he has no choice, given the ample precedent for corporations placing hefty price tags on their famous punctuation. And, as one noted to me, the exclamation point on Yahoo!'s home page may be the only one on the Internet that actually yodels when clicked.

"That alone tacks a couple hundred million on the price," he said.

Wall Street types familiar with the situation inevitably recount the 2005 war between SBC and AT&T over the valuation of the latter's ampersand. At one point the negotiations nearly broke off after SBC claimed it had no intention of paying for the ampersand because it had no intention of retaining the AT&T moniker.

"Threats don't get any emptier," a source told me. "That $16 billion deal was a $15 billion deal without the amp."

In its fiscal year 2007 filing with the Securities and Exchange Commission, EMC2 affixed a $50 million "estimated market value" on the company's exponent, while noting that it would be significantly higher if more people knew what it meant or how to create one in Microsoft Word (type a normal 2, highlight it, press ctrl, shift and the plus sign simultaneously).

"Everybody knows the Yahoo! exclamation point," my source noted, "and the [bleeping] thing yodels. EMC's silly little two doesn't do squat."

Sooner or later, Microsoft is going to have to pony up for the point.

You knew that was all a joke, right?

Of course, you did, but I ask because when I posted this "sticking/exclamation point" item to my blog last week it was met in some quarters with alarming credulity. Among the choicer comments posted on Digg, for example:

"Isn't the ! included in the value of the company?"

"I don't get it, are they actually going to continue using the name after acquisition? If not, then why [care] about it?"

"Is this some kind of The Onion-style thing, or have my worst nightmares come true?"

When writing the post I considered the possibility that some might take it seriously -- someone almost always does -- but I presumed the chances were miniscule because, among other reasons, I had intentionally set the dollar amounts preposterously high. . . . Apparently not high enough.

Lesson learned: If it's this easy to fool people when you're trying to avoid fooling them, imagine how easy it would be it if that was your intent.

By the way, the part about the Yahoo! exclamation point yodeling? That's true. Go try it.

Join the PC World newsletter!

Error: Please check your email address.

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Paul McNamara

Network World
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?