Print 62 comment(s) - last by The Jedi.. on Feb 7 at 10:20 AM

Microsoft Chief Executive Steve Ballmer is pumped up about the Microsoft-Yahoo merger possibility. He states that even if the going gets tough, Microsoft will keep going, stating to investors, "We are on a path — we were on a path and we will stay on that path regardless."  (Source: Wired)
While Microsoft looks to break bank for Yahoo, Yahoo may have other plans

The Microsoft-Yahoo merger promises to transform the online world if it goes through.   The last few days have been filled with frenzied reports.  First Microsoft announced an unsolicited $44.6 billion dollar bid for Yahoo, which has been struggling mightily as it bleeds search engine marketshare to rival Google.  Bidding heated up with the resignation of Terry Semel, Yahoo's Chairman and former CEO, who had strongly opposed the deal.  However, the deal acquired a new rival when Google announced that it was considering legal action against the move.

Microsoft re-evaluated exactly how to muster up the cash for its one half cash, one half stock bid.  The company has a significant cash reserve of $21 billion, a impressive figure that would make most corporate executives salivate.  However, Microsoft needs $22.3 billion, and it also does not want to deplete all of its cash resources.  So Microsoft revealed that it is considering something once considered taboo inside the executive circles of the company -- borrow cash in the form of debt sold on the capital markets. 

Microsoft Chief Financial Officer Chris Liddell broke the news at an annual analyst strategy meeting stating, "It’s likely we’re actually going to borrow for the first time.  It’s going to be a mixture of the cash we have on hand plus debt."

Microsoft was tight lipped on whether it was already started buying Yahoo common stock to help seal the deal, and on what kind of debt exactly it will seek on the capital markets.  Microsoft Chief Executive Steve Ballmer spoke at the meeting, stating, "We trust the Yahoo board and the Yahoo shareholders will join with us quickly in deciding to move down an integrated path."

Microsoft's confidence may be misplaced: Yahoo's board expressed a quite different story.  It will be taking its time in considering the offer.  There may still be significant reticence to the offer from Yahoo CEO Jerry Yang, despite the resignation of Semel.  While the Board is thought to be loosely supportive of the offer, Yang traditionally has opposed such a merger and supposedly helped to nix a possible deal with Microsoft a year ago.  An inside source familiar with Yang states that getting digested into Microsoft's corporate empire is "Jerry’s worst nightmare."

Also, sources familiar with Yahoo's strategy reveal that the company may soon decide on a radically different approach and reject Microsoft's offer.  These sources claim that Yahoo may turn around and enter into an alliance with rival Google to ward off the buyout. 

Another important development is that two Congressional committees have already promised to hold hearings on the merger should it go through, to determine if it violates antitrust laws.  These hearings will focus, according to legal experts, largely on not whether Microsoft and Yahoo will form a monopoly, but rather whether their businesses overlap too significantly -- another important feature of antitrust laws that has nixed many a past merger. 

Microsoft expressed that whatever hardship it faces it will stick to its guns and keep on its current path even if it leads to a bitter end.  Ballmer states, "We are on a path — we were on a path and we will stay on that path regardless."

Investors are thrilled at the prospect of Microsoft selling debt, and venture capitalists are thrilled with the merger as they feel it will drive up the acquisition prices on start-up.  A strong two competitor online field will fuel a bidding war for startups these capitalists believe.  Analysts were quick to lavish praise on Microsoft's decision to go into debt.  Kim Caughey, senior analyst at Fort Pitt Capital Group, states, "Microsoft can probably get a lower price of debt than equity.  I’ve often wondered why Microsoft sits on the pile of cash. It doesn’t make a lot of financial sense."

What will come of the unfurling drama of Microsoft-Yahoo-Google is anyone's guess.  The next weeks promise to be very interesting though.

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Picture on the right...
By Brandon Hill on 2/6/2008 11:04:42 AM , Rating: 2
That picture of Ballmer in the article is SCARY. I literally jumped back in my seat when I brought up the article.

RE: Picture on the right...
By amanojaku on 2/6/2008 11:42:47 AM , Rating: 2
I'm glad I don't work in Redmond. Imagine seeing THAT face first thing in the morning. No amount of java can prepare you for that! I'll bet he's jumping up and down, too.

"Developers, Developers, Developers! Woooooooooooo!!!"

RE: Picture on the right...
By Proteusza on 2/6/2008 11:51:21 AM , Rating: 5
Somehow I dont think they drink Java in Microsoft!

In Sun Microsystems maybe.

RE: Picture on the right...
By BansheeX on 2/6/2008 1:52:59 PM , Rating: 5
I think it's obvious that Ballmer drinks Red Bull spiked with heroine.

RE: Picture on the right...
By xsilver on 2/6/2008 7:00:00 PM , Rating: 2
dont you mean heroin spiked with red bull?

RE: Picture on the right...
By Samus on 2/6/2008 10:50:23 PM , Rating: 2
Ehh, from that pictures, his eye's give away he's obviously been drinking canned cocaine.

RE: Picture on the right...
By tuteja1986 on 2/7/2008 4:30:24 AM , Rating: 1
Beinging of the end Microsoft :! This deal is stupid :(

This deal maybe the worst buy than AMD buying ATI ;(

By amandahugnkiss on 2/7/2008 5:51:39 AM , Rating: 2
Them are strong words coming from someone who can't spell 'beginning'. You need to go learn yourself.

RE: Picture on the right...
By Urkis on 2/6/2008 10:25:57 PM , Rating: 3
"He who controls the spice controls the universe!!!"

RE: Picture on the right...
By TerranMagistrate on 2/6/2008 12:50:45 PM , Rating: 2
Ballmer obviously can hardly contain his delight at the thought of completely acquiring Yahoo! and initiating their proprietization & monopolization of the internet as well.

I want to see the look on his face if Yahoo! decides to turn down their offer.

RE: Picture on the right...
By Donkeyshins on 2/6/2008 1:45:04 PM , Rating: 1
Google is way ahead of MS on proprietization & monopolization of the internet.

RE: Picture on the right...
By JoshuaBuss on 2/6/2008 7:04:17 PM , Rating: 4
name one proprietary 'google format' ?

hell, even their amazing, revolutionary google file system had its entire structure explained in publicly available research docs

By TerranMagistrate on 2/6/2008 8:09:24 PM , Rating: 2
All wrong about the proprietization part.

RE: Picture on the right...
By Donkeyshins on 2/6/2008 1:49:47 PM , Rating: 2
"I'll swallow your soul! I'll swallow your soul!"

RE: Picture on the right...
By frobizzle on 2/6/2008 3:30:59 PM , Rating: 2
Ballmer might be a good choice to play Jason Voorhees in the next Friday the 13th movie!

RE: Picture on the right...
By BladeVenom on 2/6/2008 4:39:45 PM , Rating: 2
Looks like he could be Michael Berryman's cousin. The poster boy from the original The Hill's have Eyes.

Once again.....
By Vanilla Thunder on 2/6/2008 12:09:32 PM , Rating: 5
What a seriously misleading title. C'mon guys, is news so slow that you have to fish for readers with BS titles like this?


RE: Once again.....
By Razgriz20 on 2/6/2008 12:40:04 PM , Rating: 4
Seems like Jason is pretty desperate to mislead us with that title. What a lame article.

RE: Once again.....
By Oregonian2 on 2/6/2008 1:35:16 PM , Rating: 2
These hearings will focus, according to legal experts, largely on not whether Microsoft and Yahoo will form a monopoly, but rather whether their businesses overlap too significantly -- another important feature of antitrust laws that has nixed many a past merger

As is, I think this is pretty lame too. Companies that are 100% overlapping merge all the time as markets mature and player counts reduce. Sometimes the joining will even push the resulting company into the #1 market position (which Microsoft/Yahoo wouldn't be anywhere near).

RE: Once again.....
By Rockjock51 on 2/6/2008 10:01:46 PM , Rating: 2
EB Games + Gamestop comes to mind.

RE: Once again.....
By mikecel79 on 2/6/2008 12:51:48 PM , Rating: 3
It seems like this whole article was put up to provide links to another half dozen or so Dailytech articles. There's almost nothing new in here....

RE: Once again.....
By The Jedi on 2/7/2008 10:20:53 AM , Rating: 2
I'd agree the trend of plugging past DailyTech articles impacts the readability and flow of the articles. They want to pique the interest of people who find a DT article perhaps through a search engine or news aggregator to read other articles. But as a long time DT reader this causes increased disinterest in continuing to read DT articles... Kris.

RE: Once again.....
By KristopherKubicki on 2/6/2008 2:06:18 PM , Rating: 2
Before the article was posted we removed a lot of the Google / Yahoo discussion in the fact checking phase. The title was not reflected in this update. It was an honest mistake and we apologize for any hardship it may have caused you.

RE: Once again.....
By Ringold on 2/6/2008 2:46:04 PM , Rating: 2
It was an honest mistake and we apologize for any hardship it may have caused you.

How could they go on in life?

Oh, the pain!

RE: Once again.....
By Vanilla Thunder on 2/6/2008 3:18:49 PM , Rating: 4
we apologize for any hardship it may have caused you.

Although the explanation is appreciated, this sounds pretty patronizing, which is not appreciated.


I'm not surprised....
By Proteusza on 2/6/2008 11:11:29 AM , Rating: 4
states that getting digested into Microsoft's corporate empire is "Jerry’s worst nightmare."

I'm not surprised - we all know what happens to something after it is digested.

In truth though, I dont see Yahoo as strong enough to compete, although I do prefer Yahoo mail to Google mail.

The title says something about Yahoo opting for a Google Alliance, but I dont see that in the article. Did I miss something?

RE: I'm not surprised....
By Chimpie on 2/6/2008 11:42:09 AM , Rating: 2
Yeah, I was waiting to read that Google was going to throw an offer in there but felt like I was left hanging. :weird:

RE: I'm not surprised....
By TerranMagistrate on 2/6/2008 12:38:10 PM , Rating: 2
Agreed. The most curious part was the "Google Alliance" in the title which wasn't in the article.

RE: I'm not surprised....
By qwertyz on 2/6/08, Rating: -1
By TerranMagistrate on 2/6/2008 8:11:37 PM , Rating: 1
Stay in school, dude.

RE: I'm not surprised....
By Zensen on 2/6/2008 11:44:15 AM , Rating: 2
I don't think you did. I can't see something happening with google and yahoo either. The alliance would have to be minimal in regards to keeping it within competition. A ms and yahoo is more foreseeable. I dont want yahoo to change to much as I do enjoy using yahoo mail a lot more than i do google mail or windows live hotmail that is if a merger does occur.

RE: I'm not surprised....
By Proteusza on 2/6/2008 11:49:45 AM , Rating: 4
My point was that its mentioned in the title but not in the article.

RE: I'm not surprised....
By qwertyz on 2/6/08, Rating: -1
RE: I'm not surprised....
By TerranMagistrate on 2/6/08, Rating: 0
RE: I'm not surprised....
By maven81 on 2/6/2008 1:29:19 PM , Rating: 2
I don't think so. Microsoft isn't interested in buying yahoo to destroy them. I also doubt they are stupid enough to believe they can merely convert yahoo tech to microsoft tech. This isn't some tiny company that microsoft can completely absorb. I'm willing to bet that they aren't even thinking about creating one monolithic corporate structure, so I'm not sure what yahoo is worried about here. They aren't exactly doing too well at the moment, and could use some help.
Now having said all that, I find the whole thing kinda strange in that yahoo hasn't exactly expressed much interest in this. I hope it's not another case of Ballmer thinking he knows the outcome before it happens. I believe he got cursed out by the chairman of Nintendo once for this sort of thing.

RE: I'm not surprised....
By Serafina on 2/6/08, Rating: -1
RE: I'm not surprised....
By whickywhickyjim on 2/6/2008 11:51:03 AM , Rating: 4
The title says something about Yahoo opting for a Google Alliance, but I dont see that in the article. Did I miss something?

I thought the same. Misleading title.

RE: I'm not surprised....
By Screwballl on 2/6/2008 11:54:16 AM , Rating: 2
I was thinking the same thing... there is only one line that says anything about it:

However, the deal acquired a new rival when Google announced that it was considering legal action against the move.

this says nothing about a google alliance so someone needs to modify the headlines accordingly...

An Ex-Yahoo's Experience
By nevermore781 on 2/6/2008 1:33:57 PM , Rating: 6
This is an email i sent personally to Jerry Yang and his crew.

Hello Jerry,

Sorry to bother you, and I apologize for troubling you with this, but I felt my story needed to be heard by someone who holds Yahoo! as close to their heart as I imagine I do.

My name is Mark Hannah and I, up until yesterday, worked for the Tier 3 Broadband Connect Life Support Team in Hillsboro Oregon. This Team is managed by Ted Yuzon.

Yesterday, I quit. I started working for Yahoo! through Workforce Logic in Sept of 07. I was previously working for another company in Vancouver Washington, making about $5.00 more an hour than the $11.50 I was making working for Yahoo!/WFL. My resume was referred to Yahoo! and Ted Yuzon through a friend of mine, Jonathan Gray.

I was excited about coming to work for Yahoo! as my personal Yahoo! ID, Nevermore781, has been active since 1999. I even met my girlfriend through Yahoo! Chat over 7 years ago, so Yahoo! is very near and dear to my heart and I write this email now with the utmost contempt for what happened to me.

When I was first told about this job, my friend, Jon had told me about his experience. How he had been rolled to perm employment with Yahoo! in less than 90 days and they had a position open as the last person had moved on to another position within the company. I decided to give him my resume and have him drop my name to the manager in the hopes I could get perm employment with Yahoo!. They were interested in me and my skills based on my resume and I was brought in for an interview. I explained to both Ted and Nick my team lead when I was interviewed about my situation. The pay cut I was taking. I explained to them I was interested in the position based on what I had heard from Jon about being rolled over before 90 days and was told that I would more than likely be rolled over before 90 days if not at 90 days.

Now as I stated previously, I left a job paying me 5 dollars more an hour. I wasn’t happy at the job making more money, it was about an hour drive each way to and from work, and there wasn’t much room for growth from my position and Yahoo! Hillsboro being only about 10 minutes away, well I did the math and I figured as soon as I was rolled over to perm, the dollar difference wouldn’t be much anymore due to the time and gas savings, plus, its Yahoo!. As I said previously, Yahoo! was already near and dear to my heart, so the opportunity to work there was just amazing to me.

So I put in my 2 weeks at my previous employer and started working for Yahoo! on Sept 3rd after passing the background check. Everything was great. I loved the position and I took to it quickly. If you check the performance for the team since I started, you will see exactly how quickly. I was told by my manager that I was "raising the bar" and was complimented on my end of day reports so frequently that other team members were getting offended by the way this performance was singled out by Ted Yuzon.

My end of month totals for YCAMS tickets processed for January alone eclipsed the rest of the team by over double. If memory serves me, I was over 200 tickets ahead of the next closest agent with the same level of access to tools and systems. I don’t quite remember exactly the data from December and previous months, but I’m sure my performance and numbers for previous months put me in either 1st or 2nd position for each month. I had good QA's and good CareSATs on my tickets too. Please Check! I think you'll find the numbers interesting.

I’m stating the numbers for fact, not to brag about them. The members of this team are amazing. The team lead is probably the best direct supervisor I have ever had, so I don’t mean to make to make the numbers sound as if they did anything wrong. Basically, the numbers only contribute to my frustration with this situation.

September goes by, and by the end of November, I start feeling the $5.00 difference in my bank account pretty hard. I told this to Ted, and he explained to me about the hiring freeze and how they'd like to roll me over but the hiring freeze and they had no firm date as to when it would be lifted. Since there was no way to get hired at the time, I asked if there would be any way to increase my pay through Workforce Logic. Ted asked the powers that be and was told that the paperwork for getting a pay increase through WFL would be just as long of a process as waiting for the freeze to end would be.

December comes and I am literally praying that the freeze ends so I can be rolled perm. I wrote an email detailing my situation to Ted and I believe he did forward my concerns on to his boss. I had to move back in with my parents to be able to afford my bills on the $11.50 an hour I was getting paid, so you can probably imagine the strain put on me through that alone.

January comes, I keep asking and dropping comments about when is the freeze going to be over and how bad i need to be rolled over. Pleading. I asked my manager time and time again for information and "no news" was the answer i was given most of the time. I was kept in the dark about what was going on.

So Yesterday, I contacted Workforce Logic to try and see if they had any information as to when the freeze would end, hoping they may know something or have more information than "no news", but unfortunately, they didnt. That was my limit and i quit. Its not what i wanted. I dont like it. I am not happy about it at all.

I wanted Yahoo! to be the place where I made a career and not just another job. I owed Yahoo! a lot i felt. I wanted to make a difference within the company, and now, I am so distressed over this, I feel like deleting my account and never having anything to do with Yahoo! again.

Again i apologize for having to bother you with this, I just felt like you deserved to know what happened to an ex-Yahoo!

Thank for your time,
Mark Hannah

RE: An Ex-Yahoo's Experience
By EndPCNoise on 2/6/2008 6:43:24 PM , Rating: 4
Will someone please explain why this whiny, sour grapes, sob story received a "6"? The sad part is how many people will spend the time to read it will never get that time back.

Moral of his story: Quit like a baby. Yahoo! not sorry you left, and glad they never offered a permanent position to a quitter.

By TerranMagistrate on 2/6/2008 8:23:55 PM , Rating: 1
It illustrates the declining situation over at Yahoo! from the perspective of an employee.

Now unfortunately if you too stupid to comprehend that then I feel sorry for you likewise.

RE: An Ex-Yahoo's Experience
By ninjit on 2/7/2008 12:36:21 AM , Rating: 3
His story is anecdotal evidence of the trouble Yahoo! is in.

However, I don't think it was necessary for the OP to post his whole letter. In fact, it was probably very stupid, since he kept all the names (including his own), work history (with dates and locations), employers, supervisors, etc. etc.

All on a news site that will eventually get indexed by google (and ironically enough, Yahoo! too).

RE: An Ex-Yahoo's Experience
By Proteusza on 2/7/2008 8:35:09 AM , Rating: 2
Because it shows Yahoo is having trouble utilizing assets to get its work done?

It didnt see that the OP was so valuable to the company that he should be hired permanently.

RE: An Ex-Yahoo's Experience
By elp on 2/7/2008 9:46:01 AM , Rating: 2
I feel sorry that you had to post other people's names and all the other details. As mentioned in the previous posts, your letter will be archived.

Good luck finding a decent tech job with a tech company. The first thing most HRs do is search on your name. You're 27 according to a search I did on your tag but this stunt is something a 13-year old would do.

Karma will be a b!tch Mark.

About that big picture of Ballmer........
By kilkennycat on 2/6/2008 2:08:43 PM , Rating: 3
.. you could have made a far better effort when you Photoshopped that picture. Especially on Steve's neck.

RE: About that big picture of Ballmer........
By Ringold on 2/6/2008 2:50:07 PM , Rating: 2
Glad I'm not the only one that noted the dark neck matched to the pale head.

RE: About that big picture of Ballmer........
By James Holden on 2/6/2008 3:04:17 PM , Rating: 2
This is not a "new" picture. It's been on Wired for years. And I don't think they shopped it.

By Ringold on 2/6/2008 7:47:07 PM , Rating: 2
If that's not photoshopped.. then that man must be Frankenstein.

By bond007taz on 2/6/2008 11:27:59 AM , Rating: 2
we gonna have Yoogle and Google now?!

By noirsoft on 2/6/2008 12:50:22 PM , Rating: 2

By ninjit on 2/6/2008 12:58:30 PM , Rating: 3
*checks NetworkSolutions to see if and are still available


By Narutoyasha76 on 2/6/2008 11:36:13 AM , Rating: 2
Best picture of Ballmer ever...can almost see the veins poping out of his neck and head. Reminds me of a 5 year old about to eat chocolate cake. Well, does this merger mean we can see a search engine on Xbox360?

RE: Fascinating
By BobLoblaw on 2/6/2008 12:13:38 PM , Rating: 3
"Best picture of Ballmer ever...can almost see the veins poping out of his neck and head. Reminds me of a 5 year old about to eat chocolate cake."

Right out of a Mel Brooks movie.

By zpdixon on 2/7/2008 1:23:17 AM , Rating: 3
Buying Yahoo for $44.6 billion ? Microsoft must have completely lost their ability to make any rational decision.

If I were Balmer, I would rather spend 1/10th of this money, $4.5 billion, to buy a thousand of the most promising small startups over the next few years, at $4.5 million each.

How can Microsoft not see that buying Yahoo would be an enormous mistake is beyond me.

By aos007 on 2/7/2008 2:33:24 AM , Rating: 2
Glad I wasn't the only one who thought it was a really, realy bad decision on the part of Microsoft. I just have this gut feeling that this could very well sink them.

Anyhow your idea of buying a thousand startups is pretty cool. Probably much less of a lottery than buying Yahoo.

By FITCamaro on 2/6/2008 11:04:33 AM , Rating: 4
With the look on his face, I sure hope he was about to get a cake or a hooker to be that excited.

Speaking of corporate purchases...
By ninjit on 2/6/2008 12:55:15 PM , Rating: 2
I read another comment joking about drinking Java at MS and Sun, which reminded me of another recent purchase in the online industry.

Sun Microsystems is going to Purchase MySQL for about $800 mil.

Sure it pales in comparison to numbers being tossed around for this MS-Yahoo deal, but I'd still call it pretty significant, as MySQL is essentially what's behind all the popular websites serving up your data for you - including the likes of google.

And with the growing popularity of Content Management Systems (CMS) such as Joomla and Drupal (which require MySQL backends), their importance is only going to grow.

Heck I'm even looking to use Joomla for simple personal and school group sites, because besides initial setup it makes website maintenance so easy. The only issue I'm having is figuring out where to put the MySQL database.

I haven't see anything on DT about this yet, but maybe most tech-geeks don't care about this sort of thing.

By BruceLeet on 2/6/2008 6:46:04 PM , Rating: 2
By jadeskye on 2/6/2008 3:35:13 PM , Rating: 2
Dailytech, holder of the largest amount of steve ballmer pictures on the web!

Yahoo won't sell out
By Serafina on 2/6/08, Rating: -1
RE: Yahoo won't sell out
By Donkeyshins on 2/6/2008 1:48:55 PM , Rating: 1
So they'll sell out to the evil corporation Google instead? I'm sorry, but Google's shit stinks just as much as MS's (especially with regards to privacy) and to deny this is pure fanboyism. Your opinion on MS's internet software (I'm assuming you mean MSN and is your opinion. If you don't like it, don't use it.

RE: Yahoo won't sell out
By wildmannz on 2/6/2008 4:44:37 PM , Rating: 2
I'm not so sure it's a question of being smart or not.
But the whole thing just makes no sense to me.
Almost anyone else would be better.

"It seems as though my state-funded math degree has failed me. Let the lashings commence." -- DailyTech Editor-in-Chief Kristopher Kubicki

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