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Amid confusing developments Microsoft insists that its bid for Yahoo was anything but unequitable

"We believe we have made a very fair offer to Yahoo. Now it is up to the Yahoo board to decide."

Microsoft's Kevin Turner made the above statement to reporters at a news conference in Mumbai.  The conference was intended to focus on the launch of strategic initiatives with India's HCL Infosystems, but the topic of discussion predictably shifted back to the ongoing Microsoft and Yahoo drama.

"The bid is a tactic and a strategy towards becoming a world class digital advertising company. With or without the acquisition we are committed to becoming a world class digital advertising company," continued Turner.

Microsoft CEO Steve Ballmer recently announced that if Yahoo did not accept its offer within three weeks it would attempt to wrest control of the company from the board with a proxy battle and might lower its offered price of $42.4B USD.  Yahoo's refusal and demands for more money indicate clearly that it may be headed for a showdown with Microsoft.

Further complicating matters is Yahoo's new ad deal with Google and its possible merger with AOL.  Of course the merger would have to be approved by Yahoo's board, so if Microsoft deposes the board, it might still have its way with the company.

Turner would not comment on reports from the The New York Times that Microsoft was considering a new higher co-bid with New Corp., Rupert Murdoch's media giant, which owns Myspace.com.

Yahoo and AOL have both been criticized as floundering businesses and analysts are skeptical a merger of the two sinking boats would produce anything but a larger sinking ship.  On the other hand, many observers also have been rather scathing when asking why Microsoft has thus far, with all its resources, been unable to produce quality online offerings, or a strong search platform. 

Many analysts think that adding the struggling Yahoo may help, with market share if nothing else, but some remain skeptical of the long term benefits of a merger.



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Yes, the monetary offer was fair...
By amanojaku on 4/11/2008 1:36:32 PM , Rating: 1
Ridiculous, even, since I doubt Yahoo! is worth 42.4B USD. That being said, Yahoo! execs aren't that dumb. If MS were to purchase Yahoo! the brand and everything associated with it would disappear until the only thing left is a DNS pointer to microsoft.com.




RE: Yes, the monetary offer was fair...
By MrBlastman on 4/11/2008 1:53:32 PM , Rating: 2
Of course Microsoft claims the offer was fair...

They were the ones soliciting the offer in the first place. This is becoming very humorous.

Oh, and if Microsoft DID buy them, it would be quite silly for them to change the pointer to microsoft's own sites and they would be wasting all that valuable IP and userbase Yahoo has worked hard for years to build up.

No, instead, they would keep the yahoo.com domain, allow everything to still hook up to there, and fire/replace much of the management and software engineers while replacing them with Microsoft cronies.

I wouldn't pay 42.4 billion dollars just to shut them down, that would be ludicrous.


RE: Yes, the monetary offer was fair...
By hcahwk19 on 4/11/2008 2:20:25 PM , Rating: 2
It was fair, as the current stock values continue to prove. Granted, stock price is not the true value of the company, as they are often undervalued quite a bit, but it can be indicative of the health of a company.

Also, MS has already said that it would keep most employees and infrastructure in place. The most important MS would do is to replace the management and directors, as they are a big reason why Yahoo is in the trouble it is now.


RE: Yes, the monetary offer was fair...
By TheDoc9 on 4/11/08, Rating: -1
By tuteja1986 on 4/11/2008 11:41:27 PM , Rating: 2
Microsoft expansion of yahoo is stupid :( ... who ever is convincing them that yahoo is worth it is the idiot. I remember a famous CEO saying "Bern stern is a wall... its unbreakable".

Stupid decision like these are always defended by people "Microsoft CEO must know something that we don't know".


By 9nails on 4/12/2008 1:31:16 AM , Rating: 2
I'm not 100% certain that the brand would disappear. Yahoo! is a well known brand name. If Microsoft were to redeploy it as the Live Search portal, it may lose popularity.

Case in point, when Microsoft bought Bungie, Bungie Studio's appeared unchanged. As if the acquisition was on paper only. Even to the point when Bungie returned back into itself, concluding the Halo projects, there didn't seem to be much if any transition from the old studio to the new.


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