Microsoft Bids $44.6B for Yahoo

[John Doe]

Friday February 1, 6:41 am ET

Microsoft to Pay $31 Per Share for Yahoo, Totaling $44.6 Billion in Cash and Stock

REDMOND, Wash. (AP) -- Microsoft Corp. offered to buy search engine operator Yahoo Inc. for $44.6 billion in cash and stock in a move to boost its competitive edge in the online services market.

Microsoft bid $31 per share for Yahoo, representing a 62 percent premium to Yahoo's closing stock price Thursday.

 

[mr877]

as one person said "you cant put 2 people together with the iq of 75 and hope it beats someone with an iq of 150 in a spelling bee instead they will just fight against each other over wrong spellings"

unless msn has whole control over yahoo it will not work...

I actually hope it does becuase somtimes competition is good. Honestly right now google is abusing its powers on its advertisers just becuase they are the only true game in town. If you deal with adwords or adsense you most likely know this.

But again only if the two giants can comprimise will any ground be made up of what they already lost too google.

 

[jack1993jack]

I hate Microsoft trying to take over EVERYTHING
http://www.jackprice.name/images/Funny 05-02-2008 2

 

[John Doe]

Citigroup analyze on probability of different scenarios http://dealbook.blogs.nytimes.com/2008/02/05/setting-the-odds-on-yahoos-fate/?hp

 

[nuke007]

Buying AOL would have been more better choice then Yahoo. I guess they are going for Flicker, Yahoo Answer, Yahoo email, Yahoo search and the yahoo's reach in Asia and Europe.

The integration will be tough job.
thx

 

[www.AmCy.org]

Outsourcing Ads to Google

Here's a clip from a very recent WSJ article:

"...People in the Microsoft camp say they are confident their offer will succeed and they are willing to continue to wait as Yahoo deliberates. As time has passed, it has looked increasingly likely that Yahoo will have to negotiate with Microsoft because no other serious offers have emerged, said people familiar with the matter. Yahoo's board is expected to meet in person in coming days to further discuss its options, said people familiar with the matter.

A Microsoft spokesman declined to comment. A Yahoo spokeswoman said the company as a policy doesn't comment on when the board meets. Yahoo has said its board would consider the Microsoft offer and any alternatives, including keeping Yahoo independent.

Among the options Yahoo directors discussed was the possibility of abandoning its own search-advertising system, which generates significantly less ad revenue for each consumer search, and using ads from Google in return for a majority share of the revenue. Such a deal could increase Yahoo's cash flow and give it more latitude to try to thwart the Microsoft approach.

But antitrust experts say even such a pact with Google would likely raise red flags with regulators because of Google's and Yahoo's large shares of the Web-search and search-advertising markets. Discussing the Google option with Yahoo directors Friday, Yahoo Chief Executive Jerry Yang didn't present it as a preferred choice, said people familiar with the matter..."

AmCy

 

[www.AmCy.org]

Bid Rejected

I will sleep well tonight. Here's a clip from WSJ:

"...Yahoo Inc.'s board plans to reject Microsoft Corp.'s unsolicited $44.6 billion offer to acquire the Web giant, a person familiar with the situation says.

After a series of meetings over the past week, Yahoo's board determined that the $31 per share offer "massively undervalues" Yahoo, the person said. It also doesn't account for the risks Yahoo would be taking by entering into an agreement that might be overturned by regulators. The board plans to send a letter to Microsoft Monday, spelling out its position.

It's unclear whether Microsoft would be willing to pay such a premium, which would increase the value of its original cash and stock bid by more than $12 billion. The rejection comes as Yahoo's board has been considering various other scenarios, including a search advertising partnership Google Inc. Yahoo's directors are still considering that and other options that would safeguard the company's independence, people close the company say.

Yahoo's board appears to be betting that Microsoft doesn't want to "go hostile" and try to acquire the company against the wishes of management and the board. Such a course could cause deep resentment among the rank-and-file engineers whose cooperation is crucial to the company's success. A hostile takeover could also make it more difficult to get the deal past regulators if Yahoo management tries to convince authorities that the deal is anticompetitive.

Yahoo has taken "poison pill" provisions to prevent an unwanted takeover. Microsoft would likely have to oust the board in order to overturn them..."

AmCy