Microsoft wants to purchase Yahoo

http://infomyth.com/Lore/MicrosoftIs...crosoft_02.jpg

Microsoft has offered to buy the search engine company Yahoo for $44.6bn (£22.4bn) in cash and shares.

The offer, contained in a letter to Yahoo's board, is 62% above Yahoo's closing share price on Thursday.

Yahoo cut its revenue forecasts earlier this week and said it would have to spend an additional $300m this year trying to revive the company.

It has been struggling in recent years to compete with Google, which has also been a competitor to Microsoft.

In a conference call, Microsoft's Kevin Johnson said that the combination of the two companies would create an entity that could better compete with Google.

"Today the market [for online search and advertising] is increasingly dominated by one player," he said.

Chairman quit

Yahoo confirmed that it has received an unsolicited offer and said that its board would evaluate the proposal, "carefully and promptly in the context of Yahoo's strategic plans and pursue the best course of action to maximize long-term value for shareholders."

If Yahoo accepted the offer, competition authorities both in the US and the European Union would be likely to investigate the tie-up.

Yahoo chief executive, Jerry Yang, announced on Tuesday that he intended to lay off 1,000 staff as part of a restructuring plan.

Terry Semel, who stepped down as chief executive last June, also quit as non-executive chairman on Thursday.

Microsoft said that Yahoo shareholders could choose to receive either cash or shares.


YAHOO'S FALLING PROFITS
Oct to Dec 2007 down 23%
July to Sept 2007 down 5%
April to June 2007 down 2%
Jan to March 2007 down 11%

Yahoo share price
Microsoft share price
Google share price

Yahoo shares have fallen 46% since reaching a year-high of $34.08 in October. They opened 51.2% higher.

Microsoft opened 4.3% lower while Google shares fell 6.8%.

"Ultimately this corporate marriage was forced by the rise of Google, which has grown into a serious competitor for both Microsoft as a software company and Yahoo as an internet portal," said Tim Weber, business editor of the BBC News website.

"It is a shotgun marriage, but the person holding the shotgun is Google."

'Exorbitant premium'

According to its letter to Yahoo, Microsoft attempted to enter talks about a deal a year ago, but was rebuffed because Yahoo was confident about the "potential upside" presented by the reorganisation and operational activities that were being put in place at the time.

"A year has gone by, and the competitive situation has not improved," Microsoft's letter said.

But there has been some concern about the price that Microsoft is offering.

To me, the premium seems exorbitant, for what is a dwindling business," said Tim Smalls from the brokerage firm Execution LLC.

"I personally don't see how the synergies of Microsoft-Yahoo is going to take on Google."

Other analysts were more enthusiastic about the offer.

"It is a fantastic offer. It is game on," said Colin Gillis from Canaccord Adams.

"This consolidates the marketplace down to Google versus Microsoft. These two companies will be going head to head."

:source: Source: http://news.bbc.co.uk/1/hi/business/7222114.stm

Well, maybe yahoo will be better under MS leadership.
I don't follow the YAHOO situation, but i heard and noticed that they aren't going the good way lately. So... what ever keeps 'em going...

wow, that's would be an earthquake!

F M$!

Is there a large list of things that bill has ownership in or at least a part overship with large percentages i'm just curious as to how much of the world he owns in business

Quote:

---

Originally Posted by sleepyy

Is there a large list of things that bill has ownership in or at least a part overship with large percentages i'm just curious as to how much of the world he owns in business

---

That'll truly be interesting to see but I doubt there's a list like that available. After all, it's private information. :P

However, we must learn to stop immediately thinking that Gates is the one proposing to buy Yahoo! Microsoft is, not Gates (who has already retired from Microsoft).

you can bet he still has a say though lol. people will still always associate microsoft with gates.

I doubt this will happen. Most likely the US government will black ball this like they did the Sirius and XM satellite radio merger.

Someones got to take on Google somehow, MS with Yahoo might be the trick... but then again the government may intervene.

google has been a monopoly that hasn't turned consumer unfriendly though.

Just another reason to be anti-YaHELL ;)

This is great move for Yahoo and an utterly dumb move M$.

I would vote against it. Even after this buyout, M$ would still have less than 20% of internet adverts.

Google needs to STFU since they would still be a big player in internet adverts. There are many that wish for more competition in that playing field. Google changes there criteria for advertising like the wind.

Thank God that M$ is not trying to buy GOOGLE.For yahoo i dont give a F

yea & Microsoft might borrow the money

http://news.zdnet.com/2100-9588_22-6229155.html

yahoo died when google arrived.

Will be interesting to see if this really happens or not...
I hope another 'Hotmail + MSN' repeat isn't on the horizon
Oh well, we should be glad they aren't buying Google :ermm:
If M$ do buy Yahoo, then I'm staying the hell away from Yahoo Mail!