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Print 18 comment(s) - last by mmcdonalataocd.. on Mar 17 at 8:15 AM

Microsoft feels it has made Yahoo an offer it can't refuse

Yahoo's board and executives rejected Microsoft's buyout offer, and have tried to fight off Microsoft's hostile takeover bid.  They tried to partner with competitor Google, but were met with apathy.  Yahoo then decided to buy video advertising and content provider Maven to try to strengthen its advertising revenue.  It even launched a new homepage customization service that was relatively well received.

Still, reality appears to be about to catch up to Yahoo, as analysts predict that it will post another disappointing quarter, likely leading shareholders to approve of a buyout.  Alternatives, such as a Yahoo buyout of AOL seem unlikely, particularly as AOL is conducting its own campaign of perhaps futile acquisitions.  Matt Rosoff, an analyst at independent research firm Directions, says Microsoft appears ready to stay the course, stating, "I don't think they have any intention of backing away."

Yahoo previously considered being acquired by Rupert Murdoch, owner of Myspace and its parent company News Corp.  Murdoch, however, stated that there was no possibility such a deal would occur, stating that News Corp. was "not going to get into a fight with Microsoft."

Yahoo tried to push back the date for nominating directors, as it fears Microsoft will be able to push in directors in favor of the acquisition.  Jeffrey Lindsay, a Sanford C. Bernstein & Co. analyst, states, "In short we think Yahoo has bought itself another month or so, but at this juncture do not see any reasonably viable alternatives other than the remote possibility of Google re-entering the fray."

Some fear that Microsoft may withdraw and lower its bid as Yahoo struggles further.  In a move that perhaps signals Yahoo coming to grips with its inevitable fate, Yahoo Inc. and Microsoft Corp. executives met, so that Microsoft could present its vision for the partnership.  The meeting was considered a major breakthrough as Yahoo's executives had been relatively silent to Microsoft since their rejection of the offer last month.  According to inside sources, Yahoo executives mostly listened to what Microsoft had to say.

It was unannounced whether Yahoo Chief Executive Officer Jerry Yang and Microsoft CEO Steve Ballmer participated in the meeting.  Ballmer has been a vocal advocate of the merger, most recently plugging it at MIX08.  Microsoft has maintained a friendly attitude with Yahoo, stating that it has plenty of jobs for Yahoo employees at a time when Yahoo may otherwise be looking to lay off more employees.

Microsoft's stock price has fallen since the deal was first broached, dropping its value from $44.6B USD to $41.9B USD. 



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Resistance is Futile
By Master Kenobi (blog) on 3/14/2008 2:32:56 PM , Rating: 5
We are Microsoft. Lower your shields. Your biological and technological distinctivness will be added to our own. Resistance if futile!




RE: Resistance is Futile
By FITCamaro on 3/14/2008 3:07:25 PM , Rating: 1
Sorry Kenobi. Not one of your finer moments. It's all good though.

I'm more a fan of:
"We are borg of dyslexic. Fesistance is retile."


RE: Resistance is Futile
By Master Kenobi (blog) on 3/14/2008 3:21:27 PM , Rating: 4
I was going for accuracy rather than strange. :(


RE: Resistance is Futile
By stephenfs on 3/14/2008 3:24:07 PM , Rating: 3
"Buy 'em out, boys!"
-Bill Gates to his tough computer nerd bullys.


RE: Resistance is Futile
By dflynchimp on 3/14/2008 4:43:56 PM , Rating: 2
the terms "Computer nerds" and "bullys" just don't seem to fit together in the same sentence...unless there is a "are targets of" inserted in between...


By mmcdonalataocdotgov on 3/17/2008 8:15:48 AM , Rating: 2
They were enough to bully Homer Simpson, as in the reference. Perhaps it is a reference to the squishiness of the target here. =) If the Gates nerds can take them down, they must be sub-nerd in their fighting ability.


RE: Resistance is Futile
By lexluthermiester on 3/14/08, Rating: -1
RE: Resistance is Futile
By mindless1 on 3/14/08, Rating: -1
Here's an idea...
By dflynchimp on 3/14/2008 4:44:48 PM , Rating: 5
Microsoft and EA should try to buy out one another XD




Enough buyouts lately?
By edpsx on 3/14/2008 2:24:14 PM , Rating: 4
Seems like everyone is trying to buy one another lately, forcibly or not.




OMG!
By KingstonU on 3/14/2008 6:41:21 PM , Rating: 2
It's like Monopoly isn't just a game anymore! Jokes aside I guess world was probably always like this where, in order to survive you need to swallow your competitor or swallow the littles guys in order to kill your competitor.




RE: OMG!
By mindless1 on 3/14/2008 11:45:20 PM , Rating: 2
Not at all, in ancient times a blacksmith might sell fewer horseshoes in one month than another but when he did nobody ran up and cried "the sky is falling" like they do with Yahoo.

Unlike many markets the internet is still a growing one, and as such we can't say that a gain by (Google for example) is an impending doom, nor a slowdown for a few quarters means anything more than that Yahoo needs to rethink a few things. They have as much potention to turn around with new profit avenues as anyone else entering the market today with a new niche. For example Yahoo could do, could've done Myspace, uTube, eBay instead of Yahoo markets, and as more and more people become more deeply entrenched in the 'net serving their needs, every closed door is met with two more than open for Yahoo. The reason question is if they have the vision or have ran out and should sell now.


Ain't it the truth!
By trexpesto on 3/15/2008 1:40:22 AM , Rating: 3
quote:
Resistance if futile!




By anotherdude on 3/14/2008 2:21:04 PM , Rating: 2
It was looking inevitable anyway but now it looks really close. MSFT down at the moment but so is the market. We shall see.




Picture
By AToZKillin on 3/14/2008 2:41:05 PM , Rating: 2
I'm really diggin the picture. That was prob. one of the more memorable Simpsons episodes I've seen.




News Corp
By tjr508 on 3/14/2008 9:11:14 PM , Rating: 2
I dont buy that line stating that News Corp doesn't want to get into a fight with Microsoft. It goes against everything their news channels say about each another on the air.




wrong picture guys
By dare2savefreedom on 3/16/2008 11:29:47 PM , Rating: 2
wrong picture guys:

a more appropriate would be when the rebel freedom fighters are lining up to shoot at the door in star wars

or

when darth vader(photoshop in balmer's face) is standing at the end of the dinner table in empire strikes back

i don't understand how the cultures will mix, yahooians prefer freebsd and were proud they rebelled against the evil empire but now the yahooians should feel betray and those who are aren't sellouts will abandon ship.




In the long term...
By TerranMagistrate on 3/15/08, Rating: 0
"I mean, if you wanna break down someone's door, why don't you start with AT&T, for God sakes? They make your amazing phone unusable as a phone!" -- Jon Stewart on Apple and the iPhone














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