Is Microsoft Getting Too Cautious?

5/5 - "I was convinced that Microsoft (NASDAQ: MSFT) would go hostile on Yahoo! (NASDAQ: YHOO). Microsoft is known as a tough player, right? And Yahoo seems to be a good strategic fit."

"...if you look at Oracle (NASDAQ: ORCL), you will see that hostile takeovers do work – even though they can be complicated and protracted (especially in the case of PeopleSoft transaction). With a hostile deal, though, there is no question about who is in control, which makes it easier to slash costs.

In other words, I'm a bit perplexed. Is Microsoft getting too cautious? Has it lost its killer instinct?

Now, it's still possible that Microsoft will come back with a hostile bid as Yahoo shares collapse; this is what Oracle did in its pursuit of BEA...It would certainly be a Machiavellian move and kind of clever. More importantly, it would show the Microsoft hasn't gone soft."