Microsoft Proposes Acquisition of Yahoo!

[Darius Wey]

http://www.microsoft.com/presspass/...ress%20Releases

"Microsoft Corp. (NASDAQ:MSFT) today announced that it has made a proposal to the Yahoo! Inc. (NASDAQ:YHOO) 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."



2007 was a busy year for acquisitions, and 2008 looks to continue the trend if Yahoo! accepts Microsoft's acquisition proposal valued at $44.6 billion. Yahoo! offers some great services for desktops and mobile devices and there's huge potential in integrating these into Microsoft's arsenal of complementary and competitive offerings. But there's also the risk of Yahoo!'s services biting the dust if Microsoft fails to use them advantageously. Such flops have happened in the history of corporate mergers and acquisitions and there's always a chance it'll happen again.

So, Jerry, what's it going to be? Accept or reject? And for the rest of you, drop your thoughts on this possible acquisition in this thread.

Update: The word from Yahoo! so far has been nothing more than confirmation that an evaluation of the proposal is taking place and that it's being performed in the context of Yahoo!'s strategic plans and maximized long-term value for shareholders. Check out their press release, corporate blog post, and FAQ for more. We'll keep you updated with the latest as it occurs.

[Darius Wey]

http://www.microsoft.com/presspass/...ress%20Releases

"Microsoft Corp. (NASDAQ:MSFT) today announced that it has made a proposal to the Yahoo! Inc. (NASDAQ:YHOO) 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."



2007 was a busy year for acquisitions, and 2008 looks to continue the trend if Yahoo! accepts Microsoft's acquisition proposal valued at $44.6 billion. Yahoo! offers some great services for desktops and mobile devices and there's huge potential in integrating these into Microsoft's arsenal of complementary and competitive offerings. But there's also the risk of Yahoo!'s services biting the dust if Microsoft fails to use them advantageously. Such flops have happened in the history of corporate mergers and acquisitions and there's always a chance it'll happen again.

So, Jerry, what's it going to be? Accept or reject? And for the rest of you, drop your thoughts on this possible acquisition in this thread.

Update: The word from Yahoo! so far has been nothing more than confirmation that an evaluation of the proposal is taking place and that it's being performed in the context of Yahoo!'s strategic plans and maximized long-term value for shareholders. Check out their press release, corporate blog post, and FAQ for more. We'll keep you updated with the latest as it occurs.

[efjay]

I will likely be the odd man out by saying I would like to see this go through. Together they can hopefully combine their best characteristics and provide a better service.

[alese]

In teory this is both smart and logical move for Microsoft, so that it could better compete with Google.
But... like said, mergers can go wrong and who knows what decisions will be made if it happens (like what to do with online mail, keep them both, combine them or kill one and which one Hotmail or Yahoo?)

[daS]

The biggest impact the potential deal is having on Google is the effect on Google's stock price (down 8% as of this posting.)

Google's stock has been climbing irrationally since it started trading. Their market cap has no relationship to their potential. When this happens, the market tends to look for an "excuse" to correct. In this case, the merging of their two biggest rivals is a great one.

It will be most interesting to see if Google continues to correct, or marches on as the leader of the DOT COM bubble - Version 2. :roll:

[virain]

Originally Posted by alese

In teory this is both smart and logical move for Microsoft, so that it could better compete with Google.
But... like said, mergers can go wrong and who knows what decisions will be made if it happens (like what to do with online mail, keep them both, combine them or kill one and which one Hotmail or Yahoo?)

To kill email domain is not a good idea. than more domains than more customers. MS has @hotmail.com, @msn.com, @live.com, so @yahoo.com would only benefit MS. Plus their messangers work together fine already.

[Dyvim]

Originally Posted by daS

The biggest impact the potential deal is having on Google is the effect on Google's stock price (down 8% as of this posting.)

Google's stock has been climbing irrationally since it started trading. Their market cap has no relationship to their potential. When this happens, the market tends to look for an "excuse" to correct. In this case, the merging of their two biggest rivals is a great one.

The Google stock fall may have more to do with them missing their Wall Street earnings estimate in their recently posted quarterly results.

[daS]

Originally Posted by Dyvim

The Google stock fall may have more to do with them missing their Wall Street earnings estimate in their recently posted quarterly results.

You are right: There's no question that their quarterly results were a factor, but they did post more than a 50% increase in sales. The quarterly report alone would typically not be enough on its own.

I think it should be obvious to everyone that they can't keep going up forever. The only question is when the speculators start to admit that this emperor has no clothes. 8O

[alese]

Originally Posted by virain

...
To kill email domain is not a good idea. than more domains than more customers. MS has @hotmail.com, @msn.com, @live.com, so @yahoo.com would only benefit MS. Plus their messangers work together fine already.

I was thinking more about killing the service and not a domain, but when you think about it - what will they do with all the domains - wil they "merge" the stuff or keep separate portals/services that will overlap?

[Jason Dunn]

Wow. Big news! Guess I should have bought some Yahoo stock and gone short on the Google stock. :lol:

[VulcanTourist]

Yeah, and what happens to the SBC/AT&T-Yahoo partnership if this happens? AT&T DSL prices might skyrocket without that partnership to subsidize it, and maybe no more "free" wireless at McDonald's and Barnes and Noble. I can't see Microsoft agreeing to continue the partnership.