Microsoft describes future with Yahoo

 

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By Matthew Sparkes

Posted on 25 Feb 2008 at 10:18

Microsoft employees have been given a glimpse of a future with Yahoo, but warned to treat employees as rivals until a deal is signed.

"There has been a lot written about various aspects of the proposal. And there are compelling opportunities and tough challenges ahead," writes Microsoft platform and services division president, Kevin Johnson, in an email to Microsoft staff.

In the message, staff are promised "significant rewards and compensation", and given a glimpse of how a potential merger will work.

"Some aspects of the two cultures will naturally merge quickly and some will remain unique in the near-term and merge more slowly over time," writes Johnson.

Traditionally Microsoft has had a more formal corporate culture, while Yahoo has attempted to keep a startup atmosphere with more relaxed offices.

Johnson explains that Yahoo as a brand will remain after a merger, and any branding decisions made by leaders of both companies.

"How we integrate Microsoft and Yahoo's brands, products, and services are the types of decisions that would be made during this integration planning process - by leaders from both companies - and implemented over time after the transaction closes," says Johnson.

The email also confirms that Yahoo will stay at its Silicon Valley headquarters, rather than relocating to Redmond, where Microsoft's main campus is based.

Although Microsoft is actively pursuing a takeover, Johnson warns that employees should continue treating the company as a rival until any deal is signed.

"Prior to the close of the transaction, we must continue to compete with Yahoo as before," explains Johnson.

"It's important that Microsoft employees not speculate with Yahoo employees about the proposal or about what a deal would mean for the combined company."