Microsoft Has $45B Lying Around. Yahoo!

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News Posted: Fri, Feb 1 2008 9:03 AM

As we've mentioned here before, Yahoo has become a huge audience without a show. Now Microsoft, who have tried for years to leverage their success selling proprietary software into some sort of presence on the Internet, has decided to get that presence the old fashioned way: They're going to buy it.

Microsoft Corp. today announced that it has made a proposal to the Yahoo! Inc. Board of Directors to acquire all the outstanding shares of Yahoo! common stock for per share consideration of $31 representing a total equity value of approximately $44.6 billion. Microsoft’s proposal would allow the Yahoo! shareholders to elect to receive cash or a fixed number of shares of Microsoft common stock, with the total consideration payable to Yahoo! shareholders consisting of one-half cash and one-half Microsoft common stock. The offer represents a 62 percent premium above the closing price of Yahoo! common stock on Jan. 31, 2008.

“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,” said Steve Ballmer, chief executive officer of Microsoft. “We believe our combination will deliver superior value to our respective shareholders and better choice and innovation to our customers and industry partners.”

It's very unlikely that Yahoo! will turn this down, as the premium over value of the stock is very high. Regulatory agencies likely wouldn't balk at the acquisition, either, as Microsoft really isn't positioned strongly in the Internet search field yet, so competition is not diminished, just moved under a different name. Unless another suitor shows up with a better deal, this will likely happen as proposed. 



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kid007 replied on Fri, Feb 1 2008 9:51 AM
My comments are, they have to make it work. Don't BE LIKE AOL-TIME WARNER!!!

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they could just give it to me. Big Smile 

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replied on Fri, Feb 1 2008 3:29 PM
I think this is a mistake from Microsoft. They should find another way to compete. Google is so woven into the culture now I dont see anything like yahoo changing that now. Kinda like windows woven into the world as a whole. Just use that 45B to make sure the next windows platform is the best os in the world.
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@ FlyinBrian... Surely they won't have you believe that Vista can be topped, and by a mere 45B?

However I agree, Yahoo as a side purchase now is a bit of playing catch up or trying to win the race when its already over, take your pick

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kid007 replied on Fri, Feb 1 2008 8:26 PM
when i posted my first comment was at 7:30 before i left for work. and for microsoft part is a great move why? Media Advertising is what the internet is all about. I work for a Media Internet company and we are talking about Billions of dollars just in advertising revenues. Jesus Dave and Marco could agree with what i'm saying since HH has sponsor links and newegg is paying them a fee not only advertise them but to promote their business. If Microsoft acquires Yahoo it would be great parnetship if they stop been just a little "tight" and start thinking outside of the BOX.

About what flyinBrian said they don't need to make a better OS because at the end of the day we are dependable of their OS one way or another. Remember that is because they have to share their code with others company this would mess up the OS itself if not do yourself a search and learn a little bit more...

"According to The Seattle Times, Microsoft took 10,000 employees about five years to ship Vista. If each employee costs Microsoft about $200,000 a year, the estimated payroll costs alone for Windows Vista hover around $10 billion."
Source: http://www.mydigitallife.info/2006/12/07/how-much-time-money-and-human-costs-spent-to-produce-windows-vista/

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replied on Sat, Feb 2 2008 7:40 AM

Endersothergame:
@ FlyinBrian... Surely they won't have you believe that Vista can be topped, and by a mere 45B?

However I agree, Yahoo as a side purchase now is a bit of playing catch up or trying to win the race when its already over, take your pick

 Of course not but thats 45b they could use toward development. But thats a personal choice. The whole advertising/search engine thing seems like a fat hot air balloon waiting to explode in someones face.

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 Well the way that I look at it Microsofts web stuff and yahoo both suck!  So what do you get when you combine crap with crap, a big pile. 

I agree that Microsoft should focus more on its OS then trying to be the King of everything.  You would think that Bill Gates would have learned from Napoleon and Hitlers mistakes, and not try to fight wars on all fronts.  It never works! 

Look at Google.  They focused on a really great search engine, and then with there spare time started other projects.  Some work out, and some don't.  I mean Gmail came out how many years after hotmail and yahoo mail.  They focused on there main buisness first, and it worked.  Microsft has its self so strectched out and its showing.  All there stuff sucks.  OK well there are a few things they get right, but still.

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