I found this very interesting. Microsoft will be buying out Yahoo and current bid is at $44.6B ! If this takeover occurs (and it appears that it eventually will) how do you think it change the internet ? I suspect MS will work to make it the search engine of choice, will google lose its predominance ? etc ...
| Quote: |
By MICHAEL LIEDTKE, AP Business Writer
32 minutes ago
SAN FRANCISCO - 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, comes with Sunnyvale-based Yahoo in a vulnerable position.
In a statement Friday, Yahoo said it will "carefully and promptly" study Microsoft's bid.
With its profits steadily sliding, Yahoo's stock slipped to a four-year low earlier this week and a new management team has been trying to steer a turnaround but sees more turbulence through 2008.
The announcement sent Yahoo's share price up 60 percent in premarket trading, while Google fell 8 percent, weighted down by a fourth-quarter earnings report that missed Wall Street expectations.
In a letter to Yahoo's board of directors, Microsoft Chief Executive Steve Ballmer indicated the world's largest software maker is determined to bring the two companies together.
To underscore its resolve, Microsoft is offering a 62 percent premium to Yahoo's closing stock price Thursday.
Since reaching a 52-week high of $34.08 in October, Yahoo shares have fallen 46 percent. Yahoo climbed $10.40 a share, or 54 percent, to $29.58 in premarket trading. Microsoft shares fell $1.40, or 4.3 percent, to $31.20.
Ballmer revealed in the letter that Yahoo had rebuffed a previous overture a year ago, saying it had a turnaround in the works. But he pointedly noted Yahoo has instead deteriorated significantly.
"A year has gone by, and the competitive situation has not improved," Ballmer added.
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.
"Microsoft's consistent belief has been that the combination of Microsoft and Yahoo! clearly represents the best way to deliver maximum value to our respective shareholders, as well as create a more efficient and competitive company that would provide greater value and service to our customers," Ballmer wrote.
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."
Under terms of the proposed deal, Yahoo shareholders could choose to receive cash or Microsoft common shares, with the total purchase consisting of 50 percent cash and 50 percent stock.
Microsoft said it sees at least $1 billion in cost savings generated by the combination, and intends to offer significant retention packages to Yahoo engineers, key leaders and employees. The software giant said it believes the takeover would receive regulatory clearance and close in the second half of 2008.
Signaling Microsoft doesn't intend to take no for an answer, Ballmer wrote that the company "reserves the right to pursue all necessary steps to ensure that Yahoo's shareholders are provided with the opportunity to realize the value inherent in our proposal."
Google shares fell $46.55, or 8.3 percent, to $517.95 in premarket trading after the Mountain View-based company reported fourth-quarter earnings that missed analyst estimates.
While Yahoo is struggling, Microsoft is thriving. The Redmond, Wash.-based company last week forecast a rosy 2008 — despite broader economic worries — after it blew by Wall Street's expectations for a second consecutive quarter.
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Ah. So now MC will hit the internet too. There it goes.
They should have stuck to killing good software and operating systems.
Google is giving them tough challenge. I am pretty sure Microsoft has taken this step in same regard. Its just unbelievable the revolution that google has brought. Yahoo use to give 4 mb of space and now its unlimted I think..but still credit goes to google. Both Microsoft and Yahoo have more services than they can handle. I don't really think Microsoft will be able to benefit a lot and if deal is really worth!
@czc587 You are suppose to give the source link from where you had copied the article.
Sure Microsoft will take over the world. It was little ago when she claimed that it is good having double Open Document Format (ODF), and now she is seizing "YAHOO" because MSN has nothing to do in the e-Market..
| Quote: |
| "The booming online advertising market is increasingly dominated by one player" - said Microsoft |
So, the world will no longer be free. I ask why Yahoo has the bid? I think Yahoo can develop without Microsoft, because there are already so large projects waiting for Miscorosft and it will be worse for Yahoo to come under MS.
By the way, Google is still leading... After having, indirectly, worked for Microsoft for almost 20 years (and acquiring many of the certifications incl. MCP, MCT, MCSE, MCSD, MCDBA, ...), I have spent 2007 moving to Linux and certainly not regretting the move. The latest acquisition attempt by MS is a further example of what I don't want to see happening in the future. I do recall the early internet (before www) and what is happening today is a bit depressing, but all the more reasons to make an attempt to change things for the better.
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| czc587 You are suppose to give the source link from where you had copied the article. |
Sunny - I thought I had given the source on the first line, ie it was was AP (associated press and has the authors name included). In the future I can be more specific if that is not enough - sorry. I read it specifically on Yahoo news rss feed from AP. The exact url to the article is:
http://news.yahoo.com/s/ap/20080201/ap_on_hi_te/microsoft_yahoo_35;_ylt=AnVibii1i8i1HlPw2faU3w8E1vAI
Thanks for keeping me straight !I don't think it'll matter much. I don't know of any Yahoo products, or features that I or anyone I know uses on a regular basis. Then look at what I and people I know use from Google, like earth, scholar, search, news, picasa, and who knows what else. I certainly wouldn't put down $44.6 Billion for Yahoo.
So they're both scared of Google. 
Is this acquisition because they are scared of each other, or they're scared of Google? In my opinion, this won't do much change. Of course, this might mean more competition for Google, but I hardly think that people would migrate from Google to MS-Yahoo. According to Bill Gates, they value internet advertising as valuable or something, and it is now dominated by one player. But will people who are satisfied with Google Adwords move over to the advertising program that they roll out? I'm not sure. I, personally, won't use online advertising at all, and I am sure I won't leave Gmail for any Yahoo-Hotmail combination. I think it will end in tears. Google is already working on the next generation of web apps and Yahoo is so far behind it is almost embarrassing.
There is also the 'coroporate ethos' issue to deal with - Microsoft and Yahoo are very different corporations and forcing them together will take time and effort, during which time Google will have moved on.
The best thing that could possibly happen is that Microsoft fragments. If it splits up into several distinct companies (one for the Operating Systems, one for the web stuff, and one for the applications) I think that would be the best possible result for consumers.
Microsoft try to follow closely to Google, but far away..., Google now stepping forward to become "The World's Computer" and plan to be Internet giant, Google's ambition, to become the world's computer, plan to read our minds, the evolution of search into artificial intelligence. This will be a tough competition. As of right now, Google is better than Yahoo in my opinion. Yahoo is good for some things like stocks and news, but Google is better in other things such as offering free (and non-free) software. I think that Microsoft will have the potential to push Yahoo into being better than Google, though, simply because they have more money and resources.
I for one want it to go ahead, because I'd like to see what Microsoft does with Yahoo.
Will Windows Live become the site for you (flickr, mail, messenger...)?
Will Both services run together or will they be merged (so Yahoo mail ceases to exist, and users login to WLM)
As for the whole anti competitive thing, I don't think thats reallsy a problem. Google is already #1 in Search and Advertising and Yahoo and Microsoft already share IM networks (in a way) so Google Talk won't be missing out on anything.
The only thing I can possibly think will be unfair to google is the intergrating between windows 7 and Yahoo. I think that if the deal goes ahead, the two will become really good bedfellows. Maybe a Yahoo powered desktop search built in, automatic backup to flickr and the ability to post help and support to yahoo answers.
The only downside... maybe this will be the end of the yahoo toolbar 
| garionw wrote: |
I for one want it to go ahead, because I'd like to see what Microsoft does with Yahoo.
Will Windows Live become the site for you (flickr, mail, messenger...)?
Will Both services run together or will they be merged (so Yahoo mail ceases to exist, and users login to WLM)
As for the whole anti competitive thing, I don't think thats reallsy a problem. Google is already #1 in Search and Advertising and Yahoo and Microsoft already share IM networks (in a way) so Google Talk won't be missing out on anything.
The only thing I can possibly think will be unfair to google is the intergrating between windows 7 and Yahoo. I think that if the deal goes ahead, the two will become really good bedfellows. Maybe a Yahoo powered desktop search built in, automatic backup to flickr and the ability to post help and support to yahoo answers.
The only downside... maybe this will be the end of the yahoo toolbar |
They'll probably keep their own names because the name yahoo is still worth a lot, just like Live. The only things they'll probably do at first is exchanging everything they have, integrating all programs and services and making it easy for users to switch and use a bit of both. Then (maybe) yahoo will cease to exist but I still doubt that.
And even though google has a lot more and better services, Yahoo and MS can both have the IM market, they can create a lot more around that just like MS is doing with live now and I think that in a year MS will have a much bigger market share because they put everything together on those live pages and google tries to keep all things a bit more separate (besides calling almost everything beta).Business... it would probably put microsoft in a higher level in the net comp.
As one said - maybe MS should stay on killing off good software and OS.
Yap they use to do that with their excellent marketing power - they can even make you pay for betas - for those who remember.
But now as a gaint in cash, they no longer work that way - they kill by Cash power.
And as some noted, Yahoo will not do much for Microsoft with this accquisition.
Watch this video of Bill Gates leaving MS - for a laugh - I mean really a joke.
http://www.youtube.com/watch?v=v5uw07iEkjU
With regards They're all as bad as each other...everyone thinks Google is all goodness and that, but I'm starting to suspect Google will be like Microsoft in the 1990s - a giant monopoly. And possibly likely to abuse it.
I really don't care if Microsoft buys out Yahoo. All of them are the exact same - evil, heartless corporations. It won't matter when you're dead and in the ground - you can't take your wealth with you.
I wouldn't switch from google unless something just as good came out. I personally don't see microsoft coming out with something as good.
The deal is not yet through, but if it does happen, it is bound to be one of the world's biggest business transactions!
Let us see how it pans out.
Any of you guys have stocks in yahoo? It sky rocketed after the bid.
I personally think it's a smart move from MS. Google is definitely dominating the market, and to stay competitive, as ironic as it sounds, MS and Yahoo should do something, otherwise it's game over, and we have a possible unhealthy monopoly.
Everything is business ... that's the world which we are living 
For me this fussion doesn't mather - I don't use Yahoo.
Google corporation does this same thing ... someone have to loose sooner or later
Microsoft buy Yahoo ... Google Buy Microsoft ? 
how come microsoft had to borrow some money in order to raise enough cash to buy google should the deal go ahead.
surley they have something big planned. i mean google managed to get one of most popular sites on the net in youtube for only just over 2billion
why is yahoo over 40billion
I suppose yahoo is worth more cuz they have a wide variety of services. Their stock is much higher too. I think this is just another step closer to a general microsoft monopoly, but as a friend of mine pointed out microsoft dosent have much of an niche in the search market. But the effect of this buy out is nothing compared to what will happen when they kill net neutrality.
As of close of business day yesterday Yahoo officially rejected Microsoft's offer claiming "The [proposed] offer drastically under-valued Yahoo's stock.
| Vrythramax wrote: |
As of close of business day yesterday Yahoo officially rejected Microsoft's offer claiming "The [proposed] offer drastically under-valued Yahoo's stock.
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I'm glad to hear that! Not because I like yahoo but because I don't like Microsoft and I think it's better the more competitors there is. It's to few already.I think the deal is still possible. The rejection may well be a bargaining tactic by yahoo.
Personally I want this deal to happen.
I dont like MS much. But I dont want monopolies. And google is a monopoly in the net world. MS and Yahoo have failed to challenge google alone. May be they will suceed if they join hands.
I definitely dont want google to yet yahoo. As then yahoo will have to play 2nd fiddle to google and google will be even stronger.
as microsoft had bid yahoo for $42billons,it is quite possible for yahoo to sell thier bussiness
and as it is a business there may be a many competitor
but if microsoft succeed in buying yahoo,then he will launch a number of softwares in the field of technology
but in a conference called Microsoft Chief Executive Steve Ballmer indicated he won't take no for an answer after Yahoo rebuffed takeover overtures a year ago.
I can see a bid of at least $60 billion...if Yahoo takes the carrot.
At this rate i see the following in my "crystal ball" that Microsoft and Google will be the greatst players on internet. Every small company that tries to grow on the net will be pushed down by this 2 mega structures.
The last years Google was in high speed rate to become a mega structure and if Microsoft now can get his hands on Yahoo then there is only a competition between this two guys.
Microsoft has Windows as big product, what will be the next big product of Google... Google OS as operate system.
It wouldn't surprise anything that google will try to make his own OS to go in battle with Windows of Microsoft.
Yahoo is creating quite the poison pill for Microsoft to swallow. What is also interesting, is that I think this could be a form of "dividend" payout to many shareholders. I read somewhere (the link eludes me right now) that a lot of Yahoo Shareholders are Microsoft Shareholders. I find that very interesting...
Yahoo! said in a press release on Monday morning that "The Yahoo! board of directors has carefully reviewed Microsoft's unsolicited proposal with Yahoo!'s management team and financial and legal advisers and has unanimously concluded that the proposal is not in the best interests of Yahoo! and our stockholders,"
The company said in a press release that Microsoft's offer "substantially undervalues" Yahoo!.
Well this is a very big move. Microsoft is already a very big company and with yahoo, it will become even bigger. I wonder how will microsft manage the multiple products that it runs and yahoo also runs. How will it merge them all will it keep both of them.
Google should be more intelligent and business oriented. although they are earning good but I beleive thier adsense and other technologies will worn out with time.
| Bikerman wrote: |
| I think it will end in tears. Google is already working on the next generation of web apps and Yahoo is so far behind it is almost embarrassing. |
This pretty much says it all... no lie.No more updates after 67billion $ bid from Microsoft........!
Any Good news in favour of Microsoft, the $ company
