The positive earnings results posted earlier this week by Yahoo! will not help it fight off Microsoft's takeover bid, but rather will result in a drawn out struggle, it has been suggested.According to Aleksandra Bosnjak, lead analyst at StrategyEye Digital Media, the search engine provider's first-quarter performance "has probably set the scene for a prolonged battle for Microsoft in its bid to takeover Yahoo!", VNUNet.com reports.
As had been predicted by a number of search industry analysts, Yahoo! revealed that its earnings for the first three months of 2008 had beaten expectations, with net revenue standing at $1.35 billion, slightly ahead of initial estimates of $1.32 billion.
Commenting on the results, Ms Bosnjak said: "By delivering earnings and revenue that surpassed market estimates, Yahoo! added more uncertainty in terms of finding the right acquisition price."
She added that, regardless of its earnings, the internet company is still in a "position of weakness" and will have to collaborate with another company in order to make advances in the market.
The expert stated: "It is in Yahoo!'s interest to resolve this bid as soon as possible since failing to find a solution means, ultimately, no progress."
Additionally, both Yahoo! and Microsoft are under pressure to combat the advances being made by rival company Google, which is ahead in "every single aspect of online competition", she went on to say.
