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Print 16 comment(s) - last by Nekrik.. on Feb 26 at 1:26 AM

Microsoft says it has incentives ready to retain its employees and Yahoo employees if the takeover goes through

Microsoft and Yahoo have been rivals in Internet search for years. While Microsoft has grown and maintained its profitability, Yahoo has seen a drop in stock prices and a loss in market share.

DailyTech reported in February 2008 that Microsoft made an unsolicited offer of $44.6 billion to purchase Yahoo. The $44.6 billion offer placed a premium of 62% on Yahoo stock breaking down to about $31 per share.

Yahoo’s board rejected the Microsoft offer saying that it undervalued the company. After Yahoo rejected the offer, Microsoft moved ahead with plans of a hostile takeover of Yahoo. The takeover made some employees within both Microsoft and Yahoo fearful for their jobs since an overlap of positions would be expected if the merger happens.

Reuters is reporting that Microsoft president of platforms and services division, Kevin Johnson, sent an email to employees in his unit saying that Microsoft will dedicate “significant rewards and compensation” to retain both Microsoft and Yahoo employees. According to Johnson, “While some overlap is expected in any combination of this size, we should remember that Microsoft ... has hired over 20,000 people since 2005, and we would look to place talented employees throughout the company as a whole. We have no shortage of business and technical opportunities, and we need great people to focus on them."

Yahoo issued a statement earlier this week that it put generous severance packages in place for any employees that might lose their jobs if the company was sold. The chance of Yahoo being sold must be increasing considerably for Yahoo to admit that such severance packages were in place already.

Reuters also reports that two pension funds have independently sued Yahoo and its board of directors for refusing Microsoft’s offer. According to the suit, Yahoo is pursuing other possible deals that are not as beneficial to shareholders as the Microsoft offer.





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Sounds good.
By Omega215D on 2/25/2008 10:19:57 AM , Rating: 2
At least instead of laying off many employees (forget the number) it sounds like they'll be kept which should be good for the economy esp. for the stock market.




RE: Sounds good.
By mdogs444 on 2/25/2008 10:34:43 AM , Rating: 2
There should still be plenty of employees laid off, but that is an expected change due to paying a premium stock price to purchase the company. There will always be an overlap in employees in which current employees at MS can do the jobs of some of the people at Yahoo, and vice versa.

As with any takeover, there will be changes, but good people bring good profits.


RE: Sounds good.
By Mitch101 on 2/25/2008 10:56:56 AM , Rating: 5
All depends on how your meeting with the two Bob's goes.


RE: Sounds good.
By SlipDizzy on 2/25/2008 10:59:10 AM , Rating: 2
We're thinking about having as many as 4 people, working right underneath you.


RE: Sounds good.
By eye smite on 2/25/2008 11:05:00 AM , Rating: 4
I just have a feeling that Yahoo's name would be hurt more than helped by a microsoft takeover. Similar to but not as drastic as AOL's takeover of Netscape. I think it would push people more towards google for search engine and other offerings more than already use it. MS just isn't real popular these days.


RE: Sounds good.
By maven81 on 2/25/2008 12:47:29 PM , Rating: 3
quote:
MS just isn't real popular these days.


If you said MS search isn't too popular, I would agree, but otherwise, it's only true for a very small but vocal minority. Most people are probably quite indifferent, which is easy to forget on a tech site.


RE: Sounds good.
By Samus on 2/25/2008 4:50:18 PM , Rating: 2
After all, they need DEVELOPERS!


RE: Sounds good.
By qwertyz on 2/25/08, Rating: 0
RE: Sounds good.
By FITCamaro on 2/25/2008 12:22:35 PM , Rating: 2
Likely those who will be laid off will be finance staff, IT staff, etc. Engineers would likely be retained.


RE: Sounds good.
By Donkeyshins on 2/25/2008 1:46:28 PM , Rating: 2
If I had to take a guess, I'd say that IT staff will probably be retained - after all, there are two highly different architectures here - Yahoo is UNIX / MySQL / Apache based and MSN is Windows / SQL / IIS based - so there isn't a lot of overlap. Long term, things might change, though.


RE: Sounds good.
By masher2 (blog) on 2/25/2008 12:24:27 PM , Rating: 2
> "instead of laying off many employees (forget the number) it sounds like they'll be kept which should be good for the economy "

Keeping people you need for the business is good for the economy. Keeping people you don't need is bad.


RE: Sounds good.
By BladeVenom on 2/25/2008 2:28:18 PM , Rating: 2
Microsoft having a bad year, would definitely be bad for the economy.

Going into debt to buy a failing business in the face of a possible recession, just sounds a little too risky to me.


RE: Sounds good.
By Oregonian2 on 2/25/2008 3:02:34 PM , Rating: 2
Which is why I'm a bit surprised that more people (the anti-MS anti-success crowd) isn't solidly in favor of the purchase as a way to rid the world of Microsoft. Unless they think they'll make Yahoo successful, but I don't think they can possibly think that for obvious reasons.


ex-Yahoo's do not want to stay
By jeromekwok on 2/25/2008 9:04:10 PM , Rating: 2
I would doubt if Yahoo developers would like to stay in the new Yahoo.

UNIX administrators become MCSE; and open source developers become Visual Studio programmers?

I think these developers should go to somewhere else, turn companies into open source houses to avoid Microsoft tax.




I can believe that.
By Beenthere on 2/26/08, Rating: -1
RE: I can believe that.
By Nekrik on 2/26/2008 1:26:53 AM , Rating: 2
No doubt your dumb ass comment pretty much explains why they have completely dominated said market as well.


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