Jump to content
Sign in to follow this  
Pchan

Microsoft wants to purchase Yahoo

Recommended Posts

http://news.bbc.co.uk/2/hi/business/7222114.stm

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.

o.gif start_quote_rb.gif It is a shotgun marriage, but the person holding the shotgun is Google end_quote_rb.gif

Tim Weber, business editor, BBC News website

inline_dashed_line.gif

What's at stake, who will win?

"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.

o.gif 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%

inline_dashed_line.gif

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.

"This smacks of desperation from Microsoft who have consistently failed to achieve a meaningful online presence"

- Matt, UK

"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."

_44397676_micro_yahoo_gra416.gif


I am putting myself to the fullest possible use, which is all I think that any conscious entity can ever hope to do.

Share this post


Link to post
Share on other sites


Their email service is still widely used, along with their old school chat applications.


I am putting myself to the fullest possible use, which is all I think that any conscious entity can ever hope to do.

Share this post


Link to post
Share on other sites

I wonder what would become of Yahoo messenger. I uses Yahoo email, i switched to it from hotmail. -_-; Yahoo mail's interface is awesome, I hope a purchase doesn't do much to their services. Hotmail by far has the worst spam protection ever.


arkdx.png.64ca27dc941fbf5e58b02fbc705175b8.png
GET A NEW FUNK ON BEFORE YOU GET DUMPED ON!

Share this post


Link to post
Share on other sites
I wonder what would become of Yahoo messenger. I uses Yahoo email, i switched to it from hotmail. -_-; Yahoo mail's interface is awesome, I hope a purchase doesn't do much to their services. Hotmail by far has the worst spam protection ever.
I haven't had spam problems with hotmail for a couple of months & I'm fine.

Those who fight deplorables should see to it that they themselves do not become deplorables.

Share this post


Link to post
Share on other sites

DX, Yahoo Mail's Beta version is just like Microsoft Outlook, if you're using it. And, it kicks ass.


I am putting myself to the fullest possible use, which is all I think that any conscious entity can ever hope to do.

Share this post


Link to post
Share on other sites
I haven't had problems with Yahoo... ever. No couple of months about it. I don't care if your fine or not. X'D
I'm pretty sure that feeling has been about mutual for a while.

Those who fight deplorables should see to it that they themselves do not become deplorables.

Share this post


Link to post
Share on other sites
DX, Yahoo Mail's Beta version is just like Microsoft Outlook, if you're using it. And, it kicks ass.

Indeed. I have been using the beta version, I don't think it's beta anymore though, they removed the beta tag from the inbox at least. I vaguely remember a official email announcement, but I always just skim the service announcements when they send them. Its like Outlook without all spam problems. Most all major viruses are gained through outlook it seems. Most of the time in the work place *snickers*


arkdx.png.64ca27dc941fbf5e58b02fbc705175b8.png
GET A NEW FUNK ON BEFORE YOU GET DUMPED ON!

Share this post


Link to post
Share on other sites

Thats a huge sum of money for a business that used to be extremely successful. You'd think with 44 billion, they would invest all that money into R&D and make an entirely new company.. but then again, if they buy yahoo they get all the rights to all of yahoo's copyrights, property rights, existing clientèle, advertising contracts, etc. I can only guess to save themselves massive losses in potential lawsuits against similar technology it's probably cheaper to just outright buy yahoo and consume it's name recognition. But even considering that, that is still a huge amount of money to buy a company. I remember when HP bought Compaq for $25 billion and in the end it didn't really do HP a damn bit of good.


gallery_1_23_1357354444_270.jpg

Share this post


Link to post
Share on other sites

ok for one gates doesnt use any of his lesser apps so ive heard and 2 the more important one is microsoft wants to buy yahoo not shut it down it will be like gamestop buying ebay games accept they wont change yahoo just add touches for the most part i dont see any reason why microsoft would drop any of yahoos features and such many people prefer yahoo over hotmail because of the interface and various other things so i dont se somthing like that happening atleast wile we all care about it anyways

Share this post


Link to post
Share on other sites
Sign in to follow this  

×
×
  • Create New...