Yahoo Chairman Resigns, Microsoft Bid Offering Heats Up
February 1, 2008 11:51 AM
Yahoo Chairman Terry Semel resigns, Gates looks to solidify his online empire with the acquisition of Yahoo
Only days ago, the news broke that Yahoo was in
troubled waters and sinking fast
. The Internet giant, which ranks number 2 in terms of search engine traffic and number 1 in terms of total traffic to properties, posted a declining net profit for the fourth straight quarter. Worse yet, it announced that it would be cutting 1,000 jobs, or almost 7 percent of its workforce. CEO Jerry Yang stated that the company was facing "strong headwinds" and had to be prepared to
make big changes
Now, an opportunity has come knocking on Yahoo's door, which holds the promise of transforming the online business world. Microsoft Corp. made an unsolicited $44.6 billion
bid for Yahoo and its holdings
this morning. The offer is one half in Microsoft common stock, and the other half in cash.
The move promises a sweet payoff for share holders, who would see their stocks soar 62% from Thursday levels, up to a $31 per share payout.
Microsoft Chief Executive Steve Ballmer was among Microsoft's big guns to be pushing the move. He enthused that the move is the "next major milestone" for Microsoft. He continued, "We are very, very confident this is the right path for Microsoft and for Yahoo."
Ballmer informed the media that Microsoft has been in talks with Yahoo, preparing the offer, for nearly 18 months now. He gave Yahoo CEO Jerry Yang a personal call on Thursday night to announce the bid in person.
A Microsoft-Yahoo team would shake up the online community by creating a legitimate competitor to Google, which current stands
far above the competition
in terms of search engine Traffic. Traffic research site comScore indicates that Yahoo has 22.9% of the search engine market and Microsoft owns a 9.8% share. Together, their 32.7% share, would pose a challenge to Google's 58.4% share of the U.S. search engine market.
Microsoft revealed that it had first had broached the possibility to Yahoo executives a year ago, but was rebuffed by Yahoo's board of directors and CEO. With today's resignation of Semel, the balance of Yahoo's board could lead to a different outcome. Semel was strongly opposed to the merger last year.
A year after Microsoft's offering, Yahoo is
much worse for wear
and promises to evaluate Microsoft's proposal "carefully and promptly." As UBS analyst Benjamin Schachte puts it, "Last year, Yahoo told investors it needed more time to get on the right track. But you only get a certain amount of time to turn things around."
Steve Ballmer stated, "We have great respect for Yahoo, and together we can offer an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market."
Google spokesman Matt Furman declined to comment, stating, "It would be premature to comment at this point."
However, its safe to say that Google is not blind to the impact a Microsoft acquisition of Yahoo would make on its competitive prospects. It looks like Google may have a
real fight on its hands for the first time in years
, and Microsoft may soon add a
new piece to its ever-growing empire
"Vista runs on Atom ... It's just no one uses it". -- Intel CEO Paul Otellini
Microsoft Offers to Buy Yahoo for $44.6 Billion
February 1, 2008, 10:00 AM
Yahoo Cuts 1,000 Jobs as Profits Fall 23%
January 30, 2008, 3:37 PM
Yahoo Trades Pink Slips for Greenbacks
January 22, 2008, 4:24 PM
Yahoo to Make Big Changes
January 16, 2008, 12:16 PM
Ballmer Welcomes Google's Android OS to "Microsoft's World"
November 14, 2007, 9:56 AM
Science & Environment
February 20, 2017, 6:37 AM
The USA’s newest weather satellite sends first photos.
January 24, 2017, 6:41 AM
Netflix took a decision to invest in original content
January 19, 2017, 7:00 AM
Amazon Airborne Fulfillment Center – Your Merchandise Drop-Shipped from the Clouds
December 29, 2016, 5:00 AM
Amazon is experimenting with a new kind of grocery stores, Amazon Go
December 8, 2016, 5:00 AM
Google has developed Deep Learning Algorithm to detect Diabetic Eye Disease
December 4, 2016, 5:00 AM
Most Popular Articles
Surface Pro 5 Rumors - New Release Date and Price
April 22, 2017, 6:45 AM
Vivo V5 Plus – the Selfie Softlight is on You.
April 17, 2017, 7:05 AM
What is the Apple’s iPhone 8 specifications and release date?
April 14, 2017, 5:43 AM
Meet the Smartphone with four cameras - Alcatel Flashphone
April 5, 2017, 11:20 AM
ASUS RT-AC5300 – Ultimate Game & 4K Streaming
April 18, 2017, 7:45 AM
Latest Blog Posts
Samsung Galaxy S8 – Warning for Pet Owners
Apr 24, 2017, 5:59 AM
Sound Bars and the Costs?
Apr 23, 2017, 6:30 AM
Link your Brain to Your Computer – In Four Years…Maybe
Apr 22, 2017, 7:03 AM
Google Home can now identify users by their voice.
Apr 21, 2017, 7:15 AM
Amazon Lex – Now Available for Developers.
Apr 20, 2017, 6:58 AM
You can now use Instagram offline on your Android Smartphone
Apr 19, 2017, 8:00 AM
Now you can livestream to YouTube from your mobile device.
Apr 18, 2017, 8:05 AM
Google Home – Is It a Spy Device?
Apr 17, 2017, 7:30 AM
Apple added to self –driving test permit list
Apr 15, 2017, 6:21 AM
Project Scorpio – Coming on June 11
Apr 14, 2017, 6:20 AM
Looks Like Samsung Has Been Forgiven.
Apr 13, 2017, 6:50 AM
United Airlines - Blasted on China’s Social Network and the Stock Market
Apr 12, 2017, 6:50 AM
Amazon's Third-Party Sellers Hacked
Apr 11, 2017, 6:25 AM
Microsoft Surface Pro5 Details Revealed
Apr 9, 2017, 6:41 AM
Own An Android Phone? Then you could be hacked over Wi-FI
Apr 7, 2017, 6:47 AM
Apple confirms iOS 10.3 bug and its effect on iCloud Services
Apr 6, 2017, 6:30 AM
Apple Rolls Out New Version of Apple Music
Apr 5, 2017, 10:35 AM
Apple in the News
Apr 4, 2017, 9:03 AM
Apple iPhones Will Soon Feature Graphics Chips Designed BY Apple
Apr 3, 2017, 6:23 AM
AMD Ryzen Desktop Processors Performance
Apr 2, 2017, 6:30 AM
What makes a camera Lensless?
Apr 1, 2017, 7:45 AM
Google halts Android Wear 2.0 Update Due to Bug
Mar 31, 2017, 7:27 AM
More Blog Posts
Copyright 2017 DailyTech LLC. -
Terms, Conditions & Privacy Information