Pages: 1

Microsoft offers to buy Yahoo! for $44.6bn

(Click here to view the original thread with full colors/images)

Posted by: forwardone





Microsoft has unveiled an audacious $44.6bn offer to buy search engine giant Yahoo! in what would be one the largest ever takeovers.

Steve Ballmer's letter in full to the board of Yahoo!
http://www.telegraph.co.uk/money/gr...02/01/steve.jpgBallmer had made an audacious bid for ailing Yahoo!It said its offer valued Yahoo! at $31 per share, representing a 62pc premium to Yahoo!'s closing price on Wall Street last night.

Microsoft revealed the terms alongside a letter from its chief executive Steve Ballmer to the board of Yahoo!, which this week announced it was culling 1,000 jobs.

Mr Ballmer said he was confident a combination could generate $1bn in cost-savings.

In the letter Mr Ballmer writes: "In late 2006 and early 2007, we jointly explored a broad range of ways in which our two companies might work together. "These discussions were based on a vision that the online businesses of Microsoft and Yahoo! should be aligned in some way to create a more effective competitor in the online marketplace.

http://www.telegraph.co.uk/money/gr.../02/01/yang.jpgYahoo! founder Jerry Yang"We discussed a number of alternatives ranging from commercial partnerships to a merger proposal, which you rejected. While a commercial partnership may have made sense at one time, Microsoft believes that the only alternative now is the combination of Microsoft and Yahoo! that we are proposing."

Microsoft's move follows disappointing figures last night from Google, which nevertheless still dominates in search, despite attempts by Microsoft and Yahoo! to regain ground.

Emarketer estimates that Google raked in 75pc of US paid search advertising in 2007, up from 60pc in 2006. With number two Yahoo! collecting a mere 9pc share with the other search engines splitting 16pc of the pie.


Telegraph.co.uk


Posted by: clifton

Wow, so that may finally happen for real. People were speaking about it for quite some time


Posted by: forwardone

Could be a good thing if it means a bit more competition for the big `G`.


Posted by: clifton

Yes, it would be nice to reduce the G's power. It's getting scary


Posted by: forwardone

Yahoo's decision to reject Microsoft's $31-a-share offer has left the market speculating on whether the search giant may now turn to AOL or even Google.

Microsoft's interest in Yahoo is based on its ambition to create a competitor to Google's commanding position in the online advertising market, which was worth about $40bn last year.

If a Yahoo-Microsoft merger takes place, it will hand the software company control of about 30% of the online searches in the US, giving it critical mass to make more of its advertising technology. The deal would also give Microsoft more than 90% of email and instant messaging traffic worldwide and bring together two of the world's most visited portals - Yahoo and MSN.

Any combination is likely to be scrutinised heavily by regulatory authorities, however, with the US justice department already indicating it would be interested in examining any deal on antitrust grounds. The EU is also likely to investigate.

AOL tie-up

Yahoo could take the very risky route of attempting to link-up with Time Warner's AOL. Analysts say the likelihood of such a deal being accepted by Yahoo shareholders is low. Yahoo already has well-publicised problems and a partnership with struggling AOL may only compound them.

AOL was once one of the biggest properties on the internet but its empire has been shrinking, with concerns focused on its failure to maintain its once-dominant share of household web use.

Google deal

Online behemoth Google is believed to have approached its rival Yahoo and proposed a partnership between the two search sites.

A tie-up could involve Yahoo outsourcing its search and advertising functions to Google and concentrating instead on other areas where it has technological strength - including mobile applications, social networking and content sharing.

Such a move would amount to an admission by Yahoo that it had lost the online search battle to Google, which dominates the online ad market's largest segment. But it would allow the company to keep its independence and maintain its quirky corporate culture.

Other partnerships

Alternative potential partners for Yahoo in its bid to keep Microsoft at bay are entertainment empire Disney and Rupert Murdoch's News Corporation, whose web ventures include social networking site MySpace. However, News Corp has said it is not preparing a bid. Other companies viewed as possible contenders are AT&T and Comcast. Online auction site eBay has also been viewed as partner in the past.

Going it alone

This option will be a tough one to pitch to Yahoo shareholders, especially given that Microsoft's offer represents a 62% premium on Yahoo shares before the approach was announced. One of the internet's largest and oldest destinations, Yahoo has suffered in recent years as it struggles to compete with the might of Google. Although Yahoo is still the most visited network of sites on the web, its share of global searches has been shrinking steadily.

Delays to the launch of its Panama advertising platform sparked a series of profit warnings. Last month, Yahoo announced plans to axe 7% of the company's workforce after unveiling a 24% drop in fourth-quarter profits to $205m. Yahoo's shares have also performed badly.

Yahoo, however, says Microsoft is not offering enough and it needs more time to prove Panama and its other advertising strategies will work.

guardian.co.uk


Posted by: forwardone

Ballmer Says Yahoo Takeover Makes Sense

HANOVER, Germany (AP) — Microsoft chief executive Steve Ballmer said Monday it was the right time for the company to put out a bid for Yahoo Inc.

"The deal makes sense with the price and structure we announced. We hope it becomes reality," he told reporters at the annual CeBIT technology fair in Hanover. "There is a lot of merit for Microsoft and Yahoo, for Yahoo shareholders and for Microsoft shareholders, for advertisers and for consumers."

Analysts have debated whether Redmond, Washington-based Microsoft Corp.'s proposed $40 billion acquisition of Yahoo is worth it, given its two-year earnings slump.

Yahoo contends it is worth even more money given the reach and breadth of its sprawling Internet franchise.

Ballmer said his company's original offer is good, adding that "there is a range of dialogue" for both companies about the proposed takeover.

Shares of Microsoft fell 21 cents to $26.99 while shares of Sunnyvale, California-based Yahoo fell a penny to $27.77.


ap.google.com


Posted by: coolwonderer

Quote:
Originally Posted by forwardone
Ballmer Says Yahoo Takeover Makes Sense

HANOVER, Germany (AP) — Microsoft chief executive Steve Ballmer said Monday it was the right time for the company to put out a bid for Yahoo Inc.

"The deal makes sense with the price and structure we announced. We hope it becomes reality," he told reporters at the annual CeBIT technology fair in Hanover. "There is a lot of merit for Microsoft and Yahoo, for Yahoo shareholders and for Microsoft shareholders, for advertisers and for consumers."

Analysts have debated whether Redmond, Washington-based Microsoft Corp.'s proposed $40 billion acquisition of Yahoo is worth it, given its two-year earnings slump.

Yahoo contends it is worth even more money given the reach and breadth of its sprawling Internet franchise.

Ballmer said his company's original offer is good, adding that "there is a range of dialogue" for both companies about the proposed takeover.

Shares of Microsoft fell 21 cents to $26.99 while shares of Sunnyvale, California-based Yahoo fell a penny to $27.77.


ap.google.com


hm, if microsoft buy google its gonna ve revolution in internet world
and i hope it'll heppen,, thanks forwardone for info



eXTReMe Tracker