So, after much discussion and rumour mongering we are still no closer to knowing whether Microsoft will be able to buy Yahoo!

A Microsoft executive, Kevin Johnson sent an email on Friday to placate Yahoo! staff on their proposal. He defended Microsoft’s recruitment policies and highlighted the Redmond companies offices in Silicon Valley and stressed the need to retain knowledge.

At this stage it’s looking like the takeover will be hostile and not amicable as was first thought. This means that things could get nasty with each companies board issuing sniping statements which both parties will ultimately regret.

Further analysis on the deal highlights Microsoft’s lack of skill in the online area and inability to launch new products all on its own. Yahoo! on the other hand has proved that it cannot cope with the strength of googles online presence both as a search engine and as an ad agency. How then will the two combine to effectively challenge google?

Maybe it’s time Microsoft concentrated on its operating system business and stopped trying to be something its not.