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
"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
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
New iMac and Release Date
February 4, 2017, 9:30 AM
UMi Plus E – Powerfully Breaking Through 2017
February 15, 2017, 7:30 AM
Can your smartphone make you a safer driver?
February 15, 2017, 6:20 AM
Nvidia Titan X – Still The Ultimate Graphics Card
February 16, 2017, 6:16 AM
How Apple watch Series 2 differ from the S1
February 18, 2017, 5:37 AM
Latest Blog Posts
Feb 21, 2017, 6:12 AM
Here is how startups are helping new parents in raising children
Feb 20, 2017, 6:45 AM
Around the World
Feb 18, 2017, 5:48 AM
News of Future
Feb 17, 2017, 6:30 AM
Amazon parachutes May Float Packages to Customers
Feb 16, 2017, 8:00 AM
Now you Can Watch Facebook on Your TV
Feb 15, 2017, 7:42 AM
Feb 14, 2017, 5:36 AM
Razer Blade Stealth – Little Kaby Lake Powerhouse
Feb 13, 2017, 7:50 AM
Android 7.0 Nougat 7.0 Update Bring Less Battery Life for Samsung Galaxy S7 & S7 Edge
Feb 12, 2017, 7:45 AM
Apple iPhone 8 – OLED Display & Wireless Charging
Feb 11, 2017, 8:09 AM
Feb 10, 2017, 6:15 AM
Feb 9, 2017, 6:00 AM
Eye catching news
Feb 8, 2017, 6:16 AM
Some World News
Feb 7, 2017, 6:15 AM
Feb 6, 2017, 10:11 AM
Feb 5, 2017, 7:27 AM
Notes and News
Feb 4, 2017, 5:53 AM
Feb 3, 2017, 5:30 AM
Feb 2, 2017, 7:00 AM
News Around The World.
Feb 1, 2017, 7:20 AM
Jan 31, 2017, 7:57 AM
More Blog Posts
Copyright 2017 DailyTech LLC. -
Terms, Conditions & Privacy Information