Microsoft Offers $45B For Yahoo

[WRXWagon2112]

I can't believe this hasn't been posted yet.

Microsoft bids $45 billion for Yahoo

Software giant offers $31 a share - a 62% premium - in deal that could reorder online ad market. Microsoft's Ballmer: 'Major milestone.'

By Chris Isidore of CNNMoney.com and Michal Lev-Ram of Fortune
February 1 2008: 11:48 AM EST

NEW YORK (CNNMoney.com) -- Microsoft Corp. made an unsolicited $44.6 billion cash and stock bid for Yahoo on Friday, a deal that could shake up the competitive and lucrative market for online advertising.

The deal would pay Yahoo shareholders $31 a share, which represents a 62% premium from where Yahoo stock closed on Thursday.

Shares of Yahoo (YHOO, Fortune 500) shot up 50% at the start of trading Friday, while shares of Dow component Microsoft (MSFT, Fortune 500) tumbled about 5%.

Steve Ballmer, Microsoft's chief executive, called the move the "next major milestone" for the software giant.

"We are very, very confident this is the right path for Microsoft and for Yahoo," he said.

Microsoft hopes to close the deal by the end of the year. Ballmer said that Microsoft has been in "off and on" talks with Yahoo for 18 months and said he called Yahoo CEO Jerry Yang Thursday night to tell him the bid was coming.

...more...

I'm starting to think that we're on the road to a two-site internet: Microsoft or Google.

--Alan

[sirwilliam]

I pick google and ice cream...with hot hershey's chocolate syrup on top...and whip cream...and cherry....and some sprinkles. That is all.

[complacent]

I figured everyone's been expecting this for a long time now.

Tough call for teh CEO of Yahoo, eh?

Cash out and retire? Or stick it out and see how far down the rabbit hole goes?

[chicken n waffles]

i like my yahoo email account. i don't want to have to switch to gmail as my primary, but i begrudgingly will if this goes through. :angry face:

[Libra Monkee]

All my SPAM goes to Yahoo. Which I think they've been on the down stroke for a while. They might need this.

[ElZorro]

Yahoo stock is up over $8, Microsoft is down over $3... gee, who is this a good idea for and a bad idea for?

[avriette]

Cash out and retire? Or stick it out and see how far down the rabbit hole goes?

this is not a thread derail: as long as those msft fuckers don't buy a car company and start making smarter, safer cars.


my desktop picture is of a bmw bike i want, want, want and am afraid will be discontinued before i can afford it, so it's dominating the mind lately.

[Sabre]

Makes perfect sense to me: Even with better tech, M$ won't be able to break Google's stronghold, but buying a huge part of the advertising business and the credibility that goes with it will certainly help. Yahoo's a household name, M$ is just buying the rights to it.

[Phibs]

Yahoo would be smart to cash out now, I don't see their business doing very well in the future

[ElZorro]

Shun!

Yahoo formally rejects Microsoft offer

24 minutes ago

SAN FRANCISCO - Yahoo Inc. spurned Microsoft Corp.'s $44.6 billion takeover bid as inadequate Monday without explaining how its management will match the payoff that the slumping Internet icon's shareholders would have received had the unsolicited offer been accepted.

The rebuff had been widely anticipated after word of Yahoo's intention was leaked during the weekend.

In its formal response, Yahoo said its board had concluded Microsoft's unsolicited offer "substantially undervalues" the Sunnyvale-based company.

Yahoo's stock price had dropped by more than 40 percent in the three months leading to Microsoft's bid, which was valued at $31 per share when it was announced Feb. 1. The offer represented was 62 percent above Yahoo's market value at the time.

[complacent]

you really get it hard and dirty when i giant goes after you like that... shares will continue to slide and then m$ will score them on teh cheap.

[Libra Monkee]

M$ might try to up the ante to $35 a share but Yahoo is trying to get at least $40.

Would you like to know more?
Link1
Link2