backtop


Print

You didn't think Microsoft got rich writing bigger checks, did you?

The Yahoo and Microsoft merger process has become a waiting game, like a vulture circling a haggard beast.  After the initial frenzy surrounding Microsoft's bid, the resignation of Yahoo Chairman Terry Semel, the eventual rejection of the offer by the board, and finally Microsoft's hostile takeover offer to shareholders, matters have quieted considerably.  Microsoft, though constantly reaffirming its continued belief in the merger, is content to sit and wait.

Yahoo was unable to complete an advertising deal with Google that might have saved the company.  Meanwhile, it’s carried out a string of largely insignificant moves such as its launch of a new homepage service and its acquisition of video-advertiser Maven.

Inside sources say that Microsoft plans on standing firm and will not raise its initial offer, originally valued at $44.6B USD – half cash, half stock -- even if it has to wait.  One of the knowledgeable parties commented anonymously, "Why would Microsoft bid against themselves? The company sees no reason to bid against itself."

The sources requested anonymity as they were not authorized to speak on the company's behalf.  Early last month Microsoft met with Yahoo officials and discussed the format of a potential merger.  The meeting was seen as a substantial breakthrough in the standoff.  Since that meeting, there has been little progress.

Yahoo held talks with News Corp. owner Rupert Murdoch and Time Warner Inc's AOL division, according to inside sources.  However, these talks went virtually nowhere and Murdoch nixed any deal that would place him as a competitor to Microsoft.

Many tech blogs speculated wildly in recent weeks that Microsoft would up its bid.  One reason they won't is because of the relative failure of a recent road show by Yahoo's top executives, which was intended to improve confidence among U.S. institutional investors.

Microsoft's offer currently stands at approximately $42B USD, due to declines in Microsoft stock value.





"The Space Elevator will be built about 50 years after everyone stops laughing" -- Sir Arthur C. Clarke






Most Popular ArticlesASRock Z370 Killer – Powerful VR Ready Motherboard
November 30, 2017, 7:15 AM
Comcast xFi Advanced Gateway Modem/Router
December 6, 2017, 6:30 AM
OnePlus 5T - Star Wars Limited Edition
December 3, 2017, 6:35 AM
Harman Kardon – Home Speaker with Cortana
December 5, 2017, 5:55 AM
Samsung Galaxy A8+ - Leaked Images Online
December 2, 2017, 9:20 AM







botimage
Copyright 2017 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki