backtop


Print 25 comment(s) - last by wordsworm.. on May 4 at 11:42 AM

Ballmer says he won't pay a dime more than he thinks Yahoo is worth

In February 2008 Microsoft made an unsolicited offer to buy Yahoo for $44.6 billion in cash and stock options. Yahoo’s board of directors turned the offer down stating that the offer undervalued the company.

At the time the offer was tendered the $44.6 billion deal placed a 62% premium on what Yahoo stock was selling for. Since the initial offer was made and rejected much has transpired in the Microsoft/Yahoo saga with things taking a turn for the worst leaving Microsoft to consider a hostile takeover of Yahoo.

The Wall Street Journal reports that sources close to the deal say that as of yesterday Microsoft is leaning towards a hostile takeover attempt of Yahoo. According to the Wall Street Journal the announcement from Microsoft that it intends to pursue a hostile takeover could come as early as today.

Steve Ballmer offered no comment on when Microsoft would make its decision public and simply said, “With the right circumstances it'll happen. Without the right circumstances it won't happen.”

While Microsoft had said its initial offer was a fair valuation of Yahoo, and many agreed, it did indicate this week that it would consider upping the offer to $33 per share to avoid a hostile takeover bid. Major Yahoo stock holders say that an offer of $35 to $37 per share could make the deal happen.

A Microsoft spokesman released a statement made by Ballmer to employees after a meeting Thursday night. Ballmer said Microsoft wouldn’t pay a dime over what he thought Yahoo was worth. Ballmer said, “I will go to what I think it's worth if that gets a deal done.”

Ballmer maintains that Microsoft can get to where it wants without the Yahoo buy, but that it would just take longer. Microsoft maintains that it has the technology for a successful ad operation; it simply lacks the scale to go against Google.

Ballmer continued, “We like our strategy. We don't like our position. I’d like to have a better position relative to the guy who sells the most advertising.”



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

Welcome
By dever on 5/2/2008 2:22:41 PM , Rating: 5
I, for one, welcome our new insect overlords.




RE: Welcome
By jadeskye on 5/2/2008 2:28:19 PM , Rating: 2
you said it. i'm waiting for the day microsoft has it's own military force.


RE: Welcome
By PhoenixKnight on 5/2/2008 2:37:59 PM , Rating: 2
That'll happen once they decide to buy out Blackwater. It's only a matter of time...


RE: Welcome
By InternetGeek on 5/2/2008 2:45:04 PM , Rating: 5
Have you guys tried using the live search lately? It's gotten a lot better now.

To test this I "re-did" the same research I performed 5 years ago on search engine technology for my degree thesis. Had I done it today using Google's results it would have taken me a lot longer to come up with all the facts and books I needed then. Live actually pointed to new material that had quality and updated information.


RE: Welcome
By Runiteshark on 5/2/2008 3:04:08 PM , Rating: 3
I've got to agree with you. Live gives you a lot more pertinent information to what you are searching for then Google does. Also their Maps and birds eye view are worlds better then anything Google has.

The only thing I can say though, is I like Google's layout much more then Live's. If they made it customizable, I'd be all over it.


RE: Welcome
By MandrakeQ on 5/3/2008 7:55:29 AM , Rating: 2
I just checked this out and live search maps are much better than what I remember seeing several years ago. If they had google street and terrain views I would use this hands down for location searching.


RE: Welcome
By 306maxi on 5/2/2008 2:48:35 PM , Rating: 2
All hail the inanimate carbon rod!

Oh yeah and also In Rod we trust!


RE: Welcome
By daftrok on 5/2/2008 8:19:29 PM , Rating: 2
Giggity.


RE: Welcome
By JonnyDough on 5/2/2008 10:38:16 PM , Rating: 2
Giggity.

Goo.


The new Microsoft
By wordsworm on 5/2/2008 10:27:07 PM , Rating: 5
There are a number of good stories on cnet news about this whole saga. They've definitely been doing a good job in covering the drama. Anyways, I really liked this snippet showing the difference between Ballmer and Gates: "Up until now, Microsoft has been a company where science mattered more than sales. Specifically, Gates valued technology more than marketing and built Microsoft to reflect his priorities. Gates' tech vision was evident through the people Microsoft hired and promoted, the projects that got funding, and the amount of commitment the company put behind various initiatives." http://www.news.com/8301-10784_3-9932237-7.html

I think that Ballmer would ruin Yahoo. Not that Bill Gates was perfect, but I liked him and consider him to be one of the great people of the last 20 years - not because he was so rich, but because of what he accomplished as a geek. He is a world class nerd in the best sense of the word.

Ballmer, on the other hand, is a big bully. I can't help but think if Ballmer and Gates had met in elementary school instead of college, Ballmer would've been the guy who pulled Gates' shorts over his head.

Yahoo.com is still the world's most visited webpage. The folks who downplay the value of Yahoo often find ways to overlook this fact. Faced with a takeover attempt by MS, Yahoo has decided to turn and fight for survival. They've done so by, essentially, hastening many of their objectives and innovations.

Perhaps some of you have seen some screenshots on their work in progress of integrating all of their services into one. I liked what I saw.

Anyways, I'm tired of so many people trying to put Yahoo down. They're still a powerhouse on the Internet. They're still much better than MS as an Internet presence. They're still competitive with Google. I find most things they do are as good or better than Google, with the exception of making money off of advertising.




RE: The new Microsoft
By PrinceGaz on 5/4/2008 10:11:25 AM , Rating: 2
RE: The new Microsoft
By encryptkeeper on 5/4/2008 11:28:15 AM , Rating: 2
This article doesn't matter now, Microsoft said hell with it. After all that bluster, just like some schoolyard bully...


RE: The new Microsoft
By wordsworm on 5/4/2008 11:42:22 AM , Rating: 2
quote:
This article doesn't matter now, Microsoft said hell with it. After all that bluster, just like some schoolyard bully...


I can only hope. Somehow, after all this big talk, I can't help but get this feeling it's a ploy to create dissension in Yahoo's ranks - who are the groups that are going to react negatively to Yahoo's latest refusal? These would be, I assume, the same groups that MS will be contacting in the hopes that enough of them will create the leverage that MS needs to win the company.

If I'm wrong, and this isn't a ploy, that MS is actually walking away from this attempt, then I cannot help but rejoice in the fact that the Internet has been spared the loss of Google's #1 competitor. Some might argue that it would be added to the #2 competitor to make an even stronger bid, however, it would have been a group that, despite its monstrous financial resources, has largely been unable to reach #2 let alone #1. So, I can't help but think putting people in charge who are not as good as the people at Yahoo right now would do anything but lengthen Google's power over the Internet.

However, I will celebrate this, albeit temporary victory, by listening to Steam's "Na Na Hey Hey Kiss Him Goodbye" followed by Queen's "We will Rock You" on Yahoo unlimited.


Lower your firewalls and surrender...
By Jack Ripoff on 5/2/2008 4:03:57 PM , Rating: 1
Let the Borg jokes begin!




RE: Lower your firewalls and surrender...
By Kefner on 5/2/2008 7:31:39 PM , Rating: 2
Why did the Borg cross the road?


By wordsworm on 5/2/2008 10:02:49 PM , Rating: 2
quote:
Why did the Borg cross the road?
To assimilate the other side?


WHAT IS HOSTILE TAKE OVER?
By excrucio on 5/2/2008 4:33:49 PM , Rating: 2
so what is hostile take over?




RE: WHAT IS HOSTILE TAKE OVER?
By excrucio on 5/2/2008 4:35:46 PM , Rating: 2
Never mind... Google just answered me with the good ol' wikipedia.

I think the shareholders will sell definitly.


Yahoo
By DEredita on 5/2/08, Rating: 0
RE: Yahoo
By PAPutzback on 5/2/2008 3:26:58 PM , Rating: 1
True. I use google for everything.


RE: Yahoo
By Geektek3 on 5/2/2008 6:26:28 PM , Rating: 1
You always hear someone say they Googled something, I have never heard of someone Yahooing an item.

So apparently I haven't been keeping up here, why does M$ want Yahoo so bad? Is it for ad revenue?


monopoly
By Screwballl on 5/2/08, Rating: -1
RE: monopoly
By TomZ on 5/2/2008 3:36:20 PM , Rating: 2
Nice try, but what about Microsoft's right to purchase Yahoo shares on the open market? What about Yahoo shareholder rights to get more value for their investment relative to what Yahoo's board is currently providing?

After all, the final decision will be up to Yahoo shareholders to decide whether the Microsoft offer, hostile or otherwise, makes sense for them. The only people who lose the ability to influence in a hostile takeover is the current board, and maybe rightly so.


RE: monopoly
By rudy on 5/2/2008 5:07:26 PM , Rating: 2
You sold that when you went public.


RE: monopoly
By bryanW1995 on 5/2/2008 7:26:06 PM , Rating: 2
what? they can decline if the want to. A hostile takeover simply takes the matter to the shareholders. The shareholders will probably accept a hostile takeover b/c the alternative is that they become the next aol.


"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer

Related Articles













botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki