General Discussions

**Learning Newbie** · 02-01-2008, 12:44 PM

It's all over but the shoutin.

Quote:

Microsoft offers $44.6 billion for Yahoo

Move is software company’s boldest bid to challenge Google

REDMOND, Wash. - Microsoft Corp. has pounced on slumping Internet icon Yahoo Inc. with an unsolicited takeover offer of $44.6 billion in its boldest bid yet to challenge Google Inc.’s dominance of the lucrative online search and advertising markets.
The surprise offer of $31 per share, made late Thursday and announced Friday, seizes on Yahoo’s weakness while Microsoft tries to muscle up in a high-stakes battle with Google likely to define the technology landscape for years to come.
(Msnbc.com is a joint venture of Microsoft and NBC Universal.)
In a statement Friday, Yahoo said it will “carefully and promptly” study Microsoft’s bid.
The Justice Department also said it would be interested in reviewing the antitrust implications of the offer, and analysts expect other enforcement agencies to follow suit.
With its profits steadily sliding, Yahoo’s stock slipped to a four-year low this week, and a new management team has been trying to steer a turnaround but sees more turbulence through 2008.
The announcement lifted Yahoo’s share price by almost 50 percent in morning trading, while Google fell almost 8 percent, dragged down by a fourth-quarter earnings report that missed Wall Street expectations.
In conference call Friday morning, Microsoft Chief Executive Steve Ballmer indicated he won’t take no for an answer after Yahoo rebuffed takeover overtures a year ago.

“This is a decision we have — and I have — thought long and hard about,” Ballmer said. “We are confident it’s the right path for Microsoft and Yahoo.”
To underscore its resolve, Microsoft is offering a 62 percent premium to Yahoo’s closing stock price Thursday. If the deal is consummated, it would be by far the largest acquisition in Microsoft’s history, eclipsing last year’s $6 billion purchase of online ad service aQuantive.
Microsoft publicly disclosed its cash-and-stock offer in hopes of rallying support from Yahoo’s shareholders, making it more difficult for Yahoo’s board to turn down the bid.
In a letter released Friday, Ballmer pointedly noted Yahoo’s financial performance has deteriorated since Microsoft was spurned a year ago. At that time, Ballmer said he was told Yahoo believed it was better off on its own.
“A year has gone by, and the competitive situation has not improved,” Ballmer wrote in his letter.
Microsoft’s previous offer was rebuffed by Terry Semel, who stepped aside last year as chief executive under shareholder pressure.
Microsoft sent its latest takeover offer to Yahoo late Thursday, shortly after Semel resigned as the company’s chairman. The letter is addressed to Semel’s successors, new Chairman Roy Bostock and the current CEO, co-founder Jerry Yang, who is one of Yahoo’s largest shareholders.

In a prepared statement, Yahoo said its board “will evaluate this 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.”
Microsoft views Yahoo as its best chance to thwart Google, which has leveraged its leadership in Internet search and advertising to emerge as an increasingly serious threat to the world’s largest software maker’s persuasive influence on how people interact with computers.
Google already controls nearly 60 percent of the U.S. search market, and has been widening its lead, despite concerted efforts by both second-place Yahoo and third-place Microsoft. By combining, Microsoft and Yahoo would have a 33 percent share of the U.S. search market, according to the latest data from comScore Media Metrix.
Nevertheless, the potential acquisition of Yahoo would raise questions on competitiveness about everything from search engines to online advertising, analysts said. A federal judge this week extended by 18 months court oversight of Microsoft’s market power, which began in 2002 after a landmark antitrust settlement.
“If this deal goes through, there will be a lot of very close scrutiny ... there appears to be lots of overlap,” said Harry First, a professor at New York University’s School of Law. “It’s complicated and very big, and a lot of enforcement agencies will be interested.”
By joining forces, Microsoft and Yahoo also would widen their narrowing advantage over Google in providing free e-mail accounts — a service that helps foster more loyalty with users and create more advertising opportunities.
Advertisers around the world are expected to double their spending on the Internet during the next three years as more people get their news and entertainment on the Web instead of television, radio, newspapers and magazine. The trend is expected to create an $80 billion online ad market in 2010, up from an estimated $40 billion last year.
Despite an aggressive push in recent years, Microsoft’s online advertising expansion hasn’t paid off. Last week, the Redmond, Wash.-based company reported a 79 percent jump in its overall profit, but its online division’s loss widened to $245 million.
And Yahoo has been struggling to attract more advertising even though its Web site attracts one of the biggest audiences. The Sunnyvale-based company’s profit has declined for five consecutive quarters, prompting plans to cut 1,000 jobs later this month, a 7 percent reduction of its 14,300-employee work force.

**jamestl2** · 02-01-2008, 02:39 PM

They're also building a spaceship:
http://bits.blogs.nytimes.com/2008/0...ref=technology

Maybe Microsoft wants to launch Yahoo into space

.

Seriously though, I'm not sure how much good this will do for either company, they don't seem to offer anything outstanding enough to challenge Google with.

**Mooofasa** · 02-01-2008, 03:03 PM

I was under the impression that the talks were still ongoing, and I haven't found evidence contrary. However, the likelyhood that Microsoft will prevail is almost certain.

More importantly, are the services under Yahoo! for example Flickr going to change to Passport?!

**joder** · 02-01-2008, 03:07 PM

Quote:

Originally Posted by Mooofasa

More importantly, are the services under Yahoo! for example Flickr going to change to Passport?!

Why would they ruin a perfectly good product?

**andrei155** · 02-01-2008, 03:17 PM

lol @ james

Microsoft is going to end up being the first to discover alien lifeforms : D, certainly wouldn't surprise me.

I guess Microsoft is also trying to compete with Google. Maybe they have some changes in mind, however I think they know perfectly well whats working and whats not. I'm sure they wouldn't ruin any of yahoo's wonderful services.

**Learning Newbie** · 02-01-2008, 04:22 PM

Quote:

Originally Posted by Mooofasa

I was under the impression that the talks were still ongoing, and I haven't found evidence contrary. However, the likelyhood that Microsoft will prevail is almost certain.

The only think that could stop it at this point is the government, but not Yahoo. They said no a year ago, and their CEO stepped down since. Their stock holders are already pressuring them to sell.

**LadynRed** · 02-01-2008, 04:52 PM

Microsoft taking over everything Yahoo!

What about Yahoo Messenger, I've had an account on Yahoo for 10 years ! If MS screws with that, I'll just stop using YM, I HATE MSN Messenger.

MS will just muck up some decent products - microsoft-ize everything, which would be the usual mess.

**shahab6** · 02-03-2008, 01:12 AM

I doubt they will accept it, if Microsoft buys Yahoo what changes will they make?

**fastreplies** · 02-03-2008, 02:04 AM

Quote:

Originally Posted by shahab6

I doubt they will accept it......

Because ...

fastreplies

**ssandecki** · 02-03-2008, 03:59 AM

Yahoo! did not accept the bid offer yet, and we won't hear about it for quite some time I'm sure, if you recall remember how long it took Google to "officially" buy You Tube?

**Mooofasa** · 02-03-2008, 07:13 AM

I actually like MSN over YIM, it loads faster and doesn't take up too much room. Though conferencing on YIM is better.

Quote:

Originally Posted by Joder

Why would they ruin a perfectly good product?

Think about what you just said...

**joder** · 02-03-2008, 03:19 PM

Quote:

Originally Posted by Mooofasa

Think about what you just said...

And ?

flickr is a good product and I would quit using it if it went behind passport. They would probably try to make it where you had to use something that started up when your computer booted.

I don't use MSN, Yahoo or AOL IM clients. When I want to talk to people on those networks I fire up Trillian or Pidjin.

**NullPointer** · 02-03-2008, 11:55 PM

http://slashdot.org/articles/08/02/04/0130235.shtml

Google Yahoo alliance vs. Microsoft buyout... which will win! I smell anti-trust suits either way.

**chrishirst** · 02-04-2008, 02:41 AM

http://www.webmaster-talk.com/seo-ta...buy-yahoo.html

**Dairyman** · 02-05-2008, 12:06 AM

If the take over goes through, then Google will have to face a tough competitor in the merged entity of MS-Yahoo!

**thurrz** · 02-06-2008, 05:46 AM

its going to be google vs microsoft/yahoo