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Ballmer says he won't pay a dime more than he thinks Yahoo is worth

In February 2008 Microsoft made an unsolicited offer to buy Yahoo for $44.6 billion in cash and stock options. Yahoo’s board of directors turned the offer down stating that the offer undervalued the company.

At the time the offer was tendered the $44.6 billion deal placed a 62% premium on what Yahoo stock was selling for. Since the initial offer was made and rejected much has transpired in the Microsoft/Yahoo saga with things taking a turn for the worst leaving Microsoft to consider a hostile takeover of Yahoo.

The Wall Street Journal reports that sources close to the deal say that as of yesterday Microsoft is leaning towards a hostile takeover attempt of Yahoo. According to the Wall Street Journal the announcement from Microsoft that it intends to pursue a hostile takeover could come as early as today.

Steve Ballmer offered no comment on when Microsoft would make its decision public and simply said, “With the right circumstances it'll happen. Without the right circumstances it won't happen.”

While Microsoft had said its initial offer was a fair valuation of Yahoo, and many agreed, it did indicate this week that it would consider upping the offer to $33 per share to avoid a hostile takeover bid. Major Yahoo stock holders say that an offer of $35 to $37 per share could make the deal happen.

A Microsoft spokesman released a statement made by Ballmer to employees after a meeting Thursday night. Ballmer said Microsoft wouldn’t pay a dime over what he thought Yahoo was worth. Ballmer said, “I will go to what I think it's worth if that gets a deal done.”

Ballmer maintains that Microsoft can get to where it wants without the Yahoo buy, but that it would just take longer. Microsoft maintains that it has the technology for a successful ad operation; it simply lacks the scale to go against Google.

Ballmer continued, “We like our strategy. We don't like our position. I’d like to have a better position relative to the guy who sells the most advertising.”

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By dever on 5/2/2008 2:22:41 PM , Rating: 5
I, for one, welcome our new insect overlords.

RE: Welcome
By jadeskye on 5/2/2008 2:28:19 PM , Rating: 2
you said it. i'm waiting for the day microsoft has it's own military force.

RE: Welcome
By PhoenixKnight on 5/2/2008 2:37:59 PM , Rating: 2
That'll happen once they decide to buy out Blackwater. It's only a matter of time...

RE: Welcome
By InternetGeek on 5/2/2008 2:45:04 PM , Rating: 5
Have you guys tried using the live search lately? It's gotten a lot better now.

To test this I "re-did" the same research I performed 5 years ago on search engine technology for my degree thesis. Had I done it today using Google's results it would have taken me a lot longer to come up with all the facts and books I needed then. Live actually pointed to new material that had quality and updated information.

RE: Welcome
By Runiteshark on 5/2/2008 3:04:08 PM , Rating: 3
I've got to agree with you. Live gives you a lot more pertinent information to what you are searching for then Google does. Also their Maps and birds eye view are worlds better then anything Google has.

The only thing I can say though, is I like Google's layout much more then Live's. If they made it customizable, I'd be all over it.

RE: Welcome
By MandrakeQ on 5/3/2008 7:55:29 AM , Rating: 2
I just checked this out and live search maps are much better than what I remember seeing several years ago. If they had google street and terrain views I would use this hands down for location searching.

RE: Welcome
By 306maxi on 5/2/2008 2:48:35 PM , Rating: 2
All hail the inanimate carbon rod!

Oh yeah and also In Rod we trust!

RE: Welcome
By daftrok on 5/2/2008 8:19:29 PM , Rating: 2

RE: Welcome
By JonnyDough on 5/2/2008 10:38:16 PM , Rating: 2


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