Microsoft bids $44.6B for Yahoo!

[Jed K]

http://edition.cnn.com/2008/BUSINESS/02/...ef=topnews

Software giant Microsoft said Friday it had made an unsolicited offer to buy Internet search engine operator Yahoo with a cash and stock bid worth $44.6 billion. The $31-a-share offer represents a 62 percent premium for shareholders above the closing price of Yahoo stock on Thursday, Microsoft said in a statement. The offer allows Yahoo shareholders to elect to receive cash or a fixed number of shares of Microsoft common stock with the total purchase consisting of half cash and half stock.

See the link above for full details and reasoning.



* Jed K is shocked...

[ronit]

Maybe in 1999/2000, but today? I think $44.6B is the cost of destroying any possibility of a GOOG/YHOO merger. It seems a desperate move by microsoft to play catch up with Google. In five years will this have made any difference if microsoft still can't launch a quality search product?

Plus it takes time to absorb a company... At this point even a six month hiatus while Yahoo & microsoft figure out how to organize is going to be six months that Google launches even further ahead.

[hideip]

I find this a major success for both Yahoo and Microsoft if the deal goes through. Google is just too powerful and with the financial backing that Microsoft brings, Yahoo will once again be able to compete with Google.

[Jed K]

Just a follow-up on this story:
http://edition.cnn.com/2008/BUSINESS/04/...index.html

It seems Microsoft is putting the pressure on Yahoo! to accept within the next few weeks.

[Jed K]

Another follow-up:

Yahoo tells Microsoft to increase $41B bid
"Internet icon Yahoo, under pressure of a three-week deadline from Microsoft to accept its $41 billion buyout bid, says it does not oppose a deal with the huge software maker -- but it wants a better offer."

Source and full story @ http://edition.cnn.com/2008/BUSINESS/04/...index.html

[tabishis]

Jed K Wrote:Just a follow-up on this story:
http://edition.cnn.com/2008/BUSINESS/04/...index.html

It seems Microsoft is putting the pressure on Yahoo! to accept within the next few weeks.

Nothing can compete with Google right now. Why? Because Google offers its services to general public at no charge and that is where their strength lies. Why spend hundreds on MS Office if you can download StarOffice with Google Pack for FREE. StarOffice is as good as MS Office 2007. There's a lot going on at Google. Google has it all. There's always something new offered by them, again, for FREE. Only way to beat Google is to either partner with it or acquire it
The biggest mistake Microsoft will ever make is to buy Yahoo.

[Jed K]

tabishis Wrote:The biggest mistake Microsoft will ever make is to buy Yahoo.

No worries. Microsoft has withdrawn its bid:
http://money.cnn.com/2008/05/03/technolo.../index.htm

[Jed K]

Yahoo has been under pressure from shareholders since the collapse of the Microsoft deal:
http://edition.cnn.com/2008/BUSINESS/05/...index.html

[tsmaster]

It's probably a good thing that Yahoo hasn't been bought. I think Microsoft could better use some 40 billion on making better products, and improving their search engine. They also need to make companies more aware of msn adcenter. Google adsense has all the power right now, and buying Yahoo, which is also not up to facing google, will not help them much.

[Jed K]

Apparently Yahoo! partners with Google:

• Microsoft apparently out of picture
• Icahn has been hoping to engineer a sale to Microsoft
• The fate of Yahoo!'s board to be determined at August 1 annual meeting
• "I am happy to be helping them to stay independent," Google co-founder says
  

Source and full article @ http://edition.cnn.com/2008/TECH/06/13/y...index.html