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Microsoft offers to buy Yahoo

Old 02-01-08, 07:02 AM
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Microsoft offers to buy Yahoo

http://news.bbc.co.uk/1/hi/business/7222114.stm

First a piece of Facebook now Yahoo. Bill really wants to compete with Google.
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Old 02-01-08, 07:25 AM
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This has only been rumored since ... oh ... a year ago?

Interesting that it came out right after a Google earnings shortfall.
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Old 02-01-08, 07:38 AM
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Old 02-01-08, 07:43 AM
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i hope they dump msn money and keep yahoo finance

i wonder if Yahoo is now going to dump all their linux and slowly migrate to IIS and MS software for everything?
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Old 02-01-08, 09:48 AM
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Originally Posted by al_bundy
i hope they dump msn money and keep yahoo finance

i wonder if Yahoo is now going to dump all their linux and slowly migrate to IIS and MS software for everything?
There certainly are a lot of questions to be ironed out, like what happens to all the yahoo email accounts? Do they become hotmail accounts?
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Old 02-01-08, 10:34 AM
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i bet they keep yahoo email and just add it to passport. shouldn't be that hard since both are probably ldap on the back end

MS hasn't had good results online except for XBox Live and this is probably a merger to strengthen MSN. i bet they keep most of the Yahoo people and put them in charge of MSN like disney/pixar

one interesting thing someone on slashdot mentioned is that a lot of yahoo people are open source devs and Yahoo as a company contributed a lot to the development of many open source projects. other than a way to make MSN stronger this may be a stealth move by MS to kill off open source by buying up one of it's larger developers

and since google uses a lot of open source, it will hurt google
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Old 02-01-08, 12:42 PM
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Well, I hope that the acquisition goes through... because Yahoo has been tripping over themselves the last year or so. They (Yahoo) have gobbled up smaller companies and software (like Konfabulator -> Yahoo Widgets and Meedio -> Yahoo Go TV) and then put a grinding halt to future development.

I've been a Yahoo POP mail user since day-1 and now pay for that service, but their servers have been so flakey the last 5-6 months that I've had to resort to auto-forwarding my mail to gmail and POP-access my gmail.
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Old 02-01-08, 07:36 PM
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you can read the text of microsoft's letter here. the interesting line is the following:

Depending on the nature of your response, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!ís shareholders are provided with the opportunity to realize the value inherent in our proposal.
sounds like a potential hostile takeover threat.
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Old 02-01-08, 10:12 PM
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I think they want their search engine technology/software so they can compete with Google.
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Old 02-02-08, 08:47 AM
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Too bad MS couldn't invest $45 Billion in HD DVD. Obviously we know where MS interests are now, don't we.
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Old 02-09-08, 08:08 PM
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yahoo's board of directors is expected to reject microsoft's offer. could a hostile takeover be next? or will the yahoo shareholders revolt? they will not be happy if they lose the nice bump in value they received right after M$ tendered their offer.

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Old 02-09-08, 08:26 PM
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I'm surprised they didn't go for it. I actually thought Microsoft had already owned Yahoo for a while.
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Old 02-10-08, 11:22 AM
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Originally Posted by kms_md
yahoo's board of directors is expected to reject microsoft's offer. could a hostile takeover be next? or will the yahoo shareholders revolt? they will not be happy if they lose the nice bump in value they received right after M$ tendered their offer.

the idea is that they are worth a lot more than what microsoft is offering. that is what yahoo thinks, but the market does not as their stock price doesn't *currently* reflect that.

i'm not sure how much david yang/david filo (i don't hear his name anymore, dunno if he sold out or what) and the board owns of yahoo! versus the institutional shareholders (too lazy to look it up for) but i think the shareholders will vote to take the microsoft offer and run.

it may be several years before yahoo's stock price could reach the potential of the current microsoft offer.

think about it this way. you own a home that you bought for $100. it's worth $45 today ... say even $50. whatever. a lot less than the $100 you paid. (you know this because other homes in the area that are similar to yours has sold for this amount) somebody comes along and offers you $80 for your home. this is a shitload more than the $45-50 the market is saying, but a lot less than what you paid for it. you dont know when it's going to reach the amount you paid for it, but you can cut your losses and do something else or you can wait for the $100 offer ... which could be years ...

of course, the google "alliance" could be like your neighbor asking you not to sell your home so that his isn't worth less ... so he'll help you out with bills so your expenses are lower.

i'm sure somebody will find a hole in my anology ... but i think you get the point.
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Old 02-10-08, 11:39 AM
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Originally Posted by ChiTownAbs, Inc
the idea is that they are worth a lot more than what microsoft is offering. that is what yahoo thinks, but the market does not as their stock price doesn't *currently* reflect that.

i'm not sure how much david yang/david filo (i don't hear his name anymore, dunno if he sold out or what) and the board owns of yahoo! versus the institutional shareholders (too lazy to look it up for) but i think the shareholders will vote to take the microsoft offer and run.

it may be several years before yahoo's stock price could reach the potential of the current microsoft offer.

think about it this way. you own a home that you bought for $100. it's worth $45 today ... say even $50. whatever. a lot less than the $100 you paid. (you know this because other homes in the area that are similar to yours has sold for this amount) somebody comes along and offers you $80 for your home. this is a shitload more than the $45-50 the market is saying, but a lot less than what you paid for it. you dont know when it's going to reach the amount you paid for it, but you can cut your losses and do something else or you can wait for the $100 offer ... which could be years ...

of course, the google "alliance" could be like your neighbor asking you not to sell your home so that his isn't worth less ... so he'll help you out with bills so your expenses are lower.

i'm sure somebody will find a hole in my anology ... but i think you get the point.
i agree that the board at yahoo thinks this offer is undervalued. however, i think they will have a much harder time explaining why. they recently announced layoffs, they have suffered brain drain, and they have made zero inroads in undermining google's dominant position. there was a reason the stock price has dropped by 30 - 40 % since 10/07.

according to yahoo finance, mutual fund and institutional owners account for 71 % of yahoo's stock (compared to 10 % by "insiders"). microsoft can now take their case to the stockholders. yahoo really does not stand a chance - any alliance with google can easily be fought on antitrust grounds. microsoft has offered a nice premium on, what was then, current price. tomorrow will be interesting to see how the market reacts.
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Old 02-10-08, 08:15 PM
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The Yahoo/Google alliance won't catch a sniff from the authorities. That is the whole point -- to avoid the attention of the authorities. Google can guarantee ad revenue and what not to Yahoo.

Google and Yahoo are two seperate companies and will remain that way.
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Old 02-10-08, 08:33 PM
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Originally Posted by kms_md
i agree that the board at yahoo thinks this offer is undervalued. however, i think they will have a much harder time explaining why. they recently announced layoffs, they have suffered brain drain, and they have made zero inroads in undermining google's dominant position. there was a reason the stock price has dropped by 30 - 40 % since 10/07.

according to yahoo finance, mutual fund and institutional owners account for 71 % of yahoo's stock (compared to 10 % by "insiders"). microsoft can now take their case to the stockholders. yahoo really does not stand a chance - any alliance with google can easily be fought on antitrust grounds. microsoft has offered a nice premium on, what was then, current price. tomorrow will be interesting to see how the market reacts.
Yahoo started out like Google, but now is very different

Google is an information aggregator that makes most of its money from searches and pushing ads based on the searches. pretty much the same engine on google, gmail and it's other apps.

Yahoo is more of a media company now with it's own content and they make money on subscribers to premium content and regular ads. Google has no content of it's own and anything you see on Google News of Google Finance is there from other sources until they stop playing nice and sue Google for using their information.

Microsoft is a good match for Yahoo because MS is starting to explore getting into content like with the XBox and MSN has been a joke for years. They would buy Yahoo and that would be the new MSN. And it would be a great tech platform to test their bread and butter apps on.

Google with the cell phone thing isn't interested in content, but being the backend. If they bought Yahoo they wouldn't know what to do with the company.
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Old 02-10-08, 08:38 PM
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Dang. Split adjusted, Yahoo once traded at $100/share in early 2000.

How the mighty have fallen.
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Old 02-10-08, 09:12 PM
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Originally Posted by ChiTownAbs, Inc
The Yahoo/Google alliance won't catch a sniff from the authorities. That is the whole point -- to avoid the attention of the authorities. Google can guarantee ad revenue and what not to Yahoo.

Google and Yahoo are two seperate companies and will remain that way.
You mean Yahoo may have turned down Microsoft to avoid the authorities?

The authorities really wouldn't care about a Yahoo-Google alliance? Not sure about that, both companies seem to be wroth a lot.
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Old 02-10-08, 11:34 PM
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A merger of two companies would mean FTC would have to be involved. An alliance would not.
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Old 02-11-08, 01:17 AM
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This is going to get interesting.
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