backtop


Print 68 comment(s) - last by kontorotsui.. on Feb 2 at 10:34 PM

Microsoft offers to buy Yahoo--again

In the world of Internet search there are three main players: Microsoft, Yahoo and Google. While Google excels, the other two members of the big three are seeing their market share drop and Yahoo is having serious financial woes.

According to MSNBC, Microsoft sees this as the perfect chance to buy the floundering Yahoo property and gain some ground on the 600-pound search gorilla Google. Microsoft made an offer to purchase Yahoo for $44.6 billion and according to some the purchase could be a boon for the entire technology market. The Microsoft offer raised Yahoo stock prices by 54%.

The Microsoft offer places a 62% premium on the Yahoo stock closing price from Tuesday and the 52 week high for Yahoo stock was $34.08 in October. MSNBC reports that Microsoft offered to buy Yahoo last year and CEO Ballmer sent a letter to the Yahoo board. The Yahoo board at the time declined the offer. Ballmer told MSNBC, “According to that letter, the principal reason for this view was the Yahoo board's confidence in the "potential upside" if management successfully executed on a reformulated strategy based on certain operational initiatives, such as Project Panama, and a significant organizational realignment.”

According to sources, shareholders of Yahoo could choose cash or stock in the form of Microsoft common shares. The total purchase of Yahoo would be made with 50% cash and 50% stock. Microsoft is reported to expect a $1 billion cost savings from the merger and says it will offer significant retention packages to key Yahoo employees, engineers and managers.

Yahoo is in the process of restructuring its online business and announced earlier this month that it would be making big changes to gain market share. Part of the big changes Yahoo made was to cut jobs in an effort to cut expenses.

DailyTech reported that rumors were circulating that Yahoo could potentially lay off as many as 2,000 workers -- a figure an insider denied saying the actual number of jobs likely to be lost was more in the hundreds. A few days after the company insider said job cuts in the hundreds, Yahoo cut 1,000 jobs and announced its profits had fell by 23%.



Comments     Threshold


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

RE: Merge
By Scware on 2/1/2008 11:29:21 AM , Rating: 2
Maybe the fact that Microsoft has already bought out enough companies. 3 major search engine companies are better than it just being Google vs. Microsoft.


RE: Merge
By Ringold on 2/1/2008 11:33:28 AM , Rating: 2
Amazons A9 is offended that you forgot about it. :)


RE: Merge
By MrPieGuy on 2/1/2008 11:40:04 AM , Rating: 5
And Microsoft is sad you forgot A9 is powered by Windows Live :)


RE: Merge
By Ringold on 2/1/2008 1:23:31 PM , Rating: 2
Touche!


RE: Merge
By Spivonious on 2/1/2008 1:49:53 PM , Rating: 2
Altavista, Lycos, Dogpile, Webcrawler, Ask.com, Excite...

Those are just ones off the top of my head.


"If you look at the last five years, if you look at what major innovations have occurred in computing technology, every single one of them came from AMD. Not a single innovation came from Intel." -- AMD CEO Hector Ruiz in 2007

Related Articles
Yahoo Trades Pink Slips for Greenbacks
January 22, 2008, 4:24 PM
Yahoo to Make Big Changes
January 16, 2008, 12:16 PM













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