backtop


Print 28 comment(s) - last by xphile.. on May 30 at 8:28 PM

Yahoo wants big money for its search business

Yahoo CEO Carol Bartz talked about Yahoo at the All Things Digital conference according to eWeek. Bartz told Kara Swisher that Yahoo might sell its search operations to Microsoft. The catch of course is the same thing that kept former Yahoo CEO Jerry Yang from taking Microsoft's purchase offer -- money.

Bartz says that for Microsoft to buy Yahoo's search operations or the entire company would be possible, but the purchase would take "boatloads" of money.

Bartz told Swisher, "[Yahoo would sell to Microsoft] if there’s boatloads of money and the right technology involved."

Microsoft and Yahoo are both not commenting on any negotiations between the two companies for a search deal, but it is widely understood that talks between the two firms are ongoing. Bartz also talked about accepting the position of CEO when Yang first approached her.

Bartz says that she first turned Yang down. Yang later offered her the job again and provider her with a hand drawn organization chart with arrows everywhere. Bartz says that the chart looked like a Dilbert cartoon and needed structure so she took the job.

Bartz said, "He [Yang] drew arrows everywhere. It looked like a Dilbert cartoon. It needed some structure, and I'm actually quite good at that … so I took the job."

EWeek reports that some rumblings within the industry have a potential deal between Yahoo and Microsoft having Microsoft take charge of Yahoo's search and advertising business and Yahoo running the collective display advertising business. The only public comment made by Bartz on the negotiations is that they are being conducted privately.

Even with the talks between the two search firms reported to be ongoing, neither company is sitting and waiting for a resolution through a possible purchase. Microsoft will launch a new search engine this week code named Kumo and rumored to launch with the name Bing. Yahoo is also hard at work unveiling new technologies to improve its user experience.



Comments     Threshold


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

Boatloads?
By chmilz on 5/28/2009 11:49:47 AM , Rating: 5
Thought that ship left.




RE: Boatloads?
By jadeskye on 5/28/2009 11:50:17 AM , Rating: 5
agreed. That ship left because yahoo wasn't prepared to take a very reasonable offer.

Yahoo needs to face facts now, their business is virtually obsolete, they've had important members of their company leave for some time now, rats escaping a sinking ship.

It's time to sell up and for a realistic amount.


RE: Boatloads?
By rs1 on 5/28/2009 12:24:17 PM , Rating: 5
Yep. This is the exact same kind of unfounded arrogance that cost them the first deal, and sent their stock price down the tubes and forced them into layoffs, etc.. Their executive board seems to have a pretty unrealistic view of what the company is worth. And that's almost never a good thing.


RE: Boatloads?
By Motoman on 5/28/2009 12:03:25 PM , Rating: 5
RE: Boatloads?
By mondo1234 on 5/28/2009 4:29:57 PM , Rating: 2
I thought it was a typo and supposed to be "Buttloads"


RE: Boatloads?
By FITCamaro on 5/28/2009 12:08:46 PM , Rating: 5
Behind the scenes:

Yahoo: What will you give us for our company?
Microsoft: A double cheeseburger and fries.
Yahoo: Will you at least super size it?
Microsoft: No.
Yahoo: Fine. Deal.


RE: Boatloads?
By DigitalFreak on 5/28/2009 12:36:47 PM , Rating: 3
quote:
Bartz says that for Microsoft to buy Yahoo's search operations or the entire company would be possible, but the purchase would take "boatloads" of money.


Shitloads even.


RE: Boatloads?
By lightfoot on 5/28/2009 5:10:24 PM , Rating: 2
...is that anything like shiploads?


RE: Boatloads?
By True Strike on 5/28/2009 1:21:16 PM , Rating: 2
I don't understand how they can demand a lot for what seems to be a failing company. Unless they have a hidden card up their sleeve.
I myself haven't even visited Yahoo's website, let alone used any of their services for at least the last 4 years. I am guessing I am not alone.


RE: Boatloads?
By mindless1 on 5/28/2009 5:11:33 PM , Rating: 3
Because you forget, they aren't actually failing at all. They're simply downsizing at a point long after the dot-com bubble burst for many other companies.

We knew they'd fall in value, just as we know eventually others like YouTube will reach critical mass and have nowhere to go but down.

Now look at MS' position, they have been PAYING people to use their search service through cash back programs. MS has a great market position in other areas, but in search not so much. Even if it costs a premium it is wise for them to diversify more while they have the excess cash.

Of course you are not alone in ceasing to use Yahoo, look at how large Google has grown. On the other hand, lots of people, the average John and Jane Doe, seem statistically more likely to have Yahoo as their homepage and use it as a search portal too.

Point is, people are often resistant to change, if they had used Yahoo in the past and so long as it still meets their needs, they have little reason to change. The rest of us can still prefer another service but a significant % still use Yahoo, so there is still profit in their company's future if they can scale their expenses proportionate to a changing market income stream... like all these online service providers end up having to do eventually.


RE: Boatloads?
By lightfoot on 5/28/2009 5:17:30 PM , Rating: 2
My dad uses Yahoo as his homepage - but he still searches through Google... D'oh!


RE: Boatloads?
By SublimeSimplicity on 5/28/2009 3:18:37 PM , Rating: 2
I think you guys are selling them short here. They make a very tasty beverage and even in this health conscious climate, that's still worth something.

Hold on... I just re-read, we're not talking about YooHoo? We're talking about Yahoo? You mean they're still in business?


RE: Boatloads?
By xphile on 5/30/2009 8:28:45 PM , Rating: 2
And nobody sailed on the Titanic after it's failed maiden voyage either.


I got your boatloads right here
By noirsoft on 5/28/2009 2:18:01 PM , Rating: 3
Two kayaks full of pennies, coming right up...

Darn. I overpaid.




RE: I got your boatloads right here
By SublimeSimplicity on 5/28/2009 3:14:40 PM , Rating: 2
I think one kayak filled with pesos would be a more reasonable offer.


By ThisSpaceForRent on 5/28/2009 8:42:04 PM , Rating: 2
If Microsoft paid for the company in Zimbabwe dollars it would be boatloads of cash.


Master of the Obvious
By grandpope on 5/28/2009 12:05:27 PM , Rating: 2
quote:
Yahoo CEO Carol Bartz talked about Yahoo at the All Things Digital conference according to eWeek.

No, really?




RE: Master of the Obvious
By lightfoot on 5/28/2009 5:15:24 PM , Rating: 2
When did Yahoo switch to digital?


RE: Master of the Obvious
By EricMartello on 5/29/2009 2:20:01 AM , Rating: 2
I heard Yahoo is going on the internets soon.


Search provider
By Trikat on 5/28/2009 1:02:34 PM , Rating: 2
I thought Yahoo recently stated they basically lost the search provider war and conceded defeat to Google.
I'm sure there is a better source, but a quick Google turned up this: http://www.theregister.co.uk/2009/05/21/yahoo_soci...

Probably not a good idea to admit defeat and then stir up news about selling themselves to Microsoft.




RE: Search provider
By mindless1 on 5/28/2009 5:14:00 PM , Rating: 2
Ah, but it isn't really a war. Just like you could have two countries that co-exist without a requirement that they fight to the death, so now we have a giant in the industry and several others competing for the scraps. There's still plenty of profit in scraps, consider that ask.com is still around, who uses THAT?


How many boat loads is $45 Billion Dollars
By lightfoot on 5/28/2009 5:01:07 PM , Rating: 2
I'd guess that even $1 Billion would be considered by most people to be "boatloads." That would be ten million $100 bills - easily a boatload, by any definition.




By lightfoot on 5/28/2009 5:06:33 PM , Rating: 2
By the way $1 billion dollars in $100 bills would weigh roughly 22,000 lbs or 10 metric tones. So by my math, boatloads could be as little as $200 million (one ton per boat.) A far cry from $45 billion that they were originally offered...


By arazok on 5/28/2009 11:50:53 AM , Rating: 2
If the US dollar keeps falling, that just might be possible!




Song
By deltadeltadelta on 5/28/2009 5:56:05 PM , Rating: 2
This is the song that never ends. It goes on and on my friends.

Or if you prefer, Pete and Repeat were in a boat....




Oh dear, from bad to worse...
By lemonadesoda on 5/28/2009 7:50:35 PM , Rating: 2
quote:
Bartz said, "He [Yang] drew arrows everywhere. It looked like a Dilbert cartoon. It needed some structure, and I'm actually quite good at that … so I took the job."

Oh, give me a job based on dot-to-dot, maze puzzles and cartoons.

Something, call it a hunch (LOL), tells me that the job of CEO is a little more complex than sitting at your desk redrawing organisation charts.

I give her 9 months. Not more. But in that nine months the value of yahoo will halve.

MS aint stupid. They're delighted.




Let yahoo go away
By InternetGeek on 5/28/2009 10:16:14 PM , Rating: 2
I think buying Yahoo would be a bad investment for Microsoft. The only thing of value could be the indexes of the search engine... which well, doesn't perform quite well.

I think Microsoft would do better to grow their engine on their own along all their other online offerings.




"Its that simple"
By crystal clear on 5/29/2009 2:42:40 AM , Rating: 2
quote:
Bartz told Swisher, "[Yahoo would sell to Microsoft] if there’s boatloads of money and the right technology involved."


Bartz, formerly chairman and CEO of AutoDesk, would NOT have taken the job had it meant simply selling off the company to Microsoft ... "It's that simple."

So the message is clear - NO SALE.

Its the company shareholders and the board of directors that want the boatloads of money but that money is NOT coming & NOT going to come.

Bartz took the job to turn the company around, to compete & gain marketshare & NOT to get the best possible deal from Microsoft.




"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














botimage
Copyright 2012 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki