Microsoft makes $44.6B bid for Yahoo

Posted:
in General Discussion edited January 2014
In its latest bid to challenge Google's dominance in the online search and advertising markets, Microsoft on Friday issued a hostile takeover offer for Internet staple Yahoo valued at $44.6 billion.



Under the proposed deal, Microsoft would acquire all the outstanding shares of Yahoo common stock for $31 per share, representing a 62 percent premium above the closing price on those shares on Thursday.



According to a statement issued by the Redmond, Wash.-based software giant, Yahoo shareholders could 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.



"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 Microsoft chief executive Steve Ballmer. "We believe our combination will deliver superior value to our respective shareholders and better choice and innovation to our customers and industry partners."



In a letter to Yahoo's Board of Directors also published on Friday, Ballmer revealed that Microsoft approached Yahoo in late 2006 to explore ways the two firms could align to create a more effective competitor to dominate forces such as Google. The offer, which also included talk of a possible acquisition, was rebuffed.



In a written response to that offer sent last February, Yahoo's Board is said to have expressed confidence in a turnaround strategy and a significant organizational realignment, arguing that it was the wrong time for its shareholders to enter into discussions regarding an acquisition transaction.



"A year has gone by, and the competitive situation has not improved," Ballmer wrote in his latest letter.



"Today, the market is increasingly dominated by one player who is consolidating its dominance through acquisition," he added. "Together, Microsoft and Yahoo! can offer a credible alternative for consumers, advertisers, and publishers."
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Comments

  • Reply 1 of 101
    Wow, First I gotta cancel my Yahoo email account. Seond, I gotta buy some Yahoo stock real quick!
  • Reply 2 of 101
    e1618978e1618978 Posts: 6,075member
    Quote:
    Originally Posted by mdotdubz View Post


    Wow, First I gotta cancel my Yahoo email account. Seond, I gotta buy some Yahoo stock real quick!



    too late - it shot up 60% already.
  • Reply 3 of 101
    yeah, I missed the boat :0( ... It'll probably be all over the place and end a bit lower today. Msft on the other hand is actually down almost $2 (6%) premarket.... Guess the market is looking at it as another dumb aquisition by mr.softee...
  • Reply 4 of 101
    This really is a very sad day.



    I was always quite fond of yahoo.



    Farewell old friend
  • Reply 5 of 101
    e1618978e1618978 Posts: 6,075member
    Another year, another company for Microsoft to run into the ground. Maybe its time to buy Google.
  • Reply 6 of 101
    Anyone know how much money Microsoft has (Assuming the shareholders deny it)?

    Because damn, 44.6 billion dollars, you could be a millionaire with that!
  • Reply 7 of 101
    stubeckstubeck Posts: 140member
    What companies have MS run into the ground? And why do people see this as a horrible thing?
  • Reply 8 of 101
    e1618978e1618978 Posts: 6,075member
    Quote:
    Originally Posted by StuBeck View Post


    What companies have MS run into the ground? And why do people see this as a horrible thing?



    Hotmail, for one - it was the most popular internet email client before they bought it.



    Looking through their history on wikipedia, they have actually bought fewer companies than I thought - but every business that they have entered (except windows and office) has been a dismal failure (including xbox, at least from a financial perspective).
  • Reply 9 of 101
    Quote:
    Originally Posted by mdotdubz View Post


    Wow, First I gotta cancel my Yahoo email account. Seond, I gotta buy some Yahoo stock real quick!



    Not buying the stock... but I don't trust M$. I think it is time to get a dotMac account.
  • Reply 10 of 101
    Quote:
    Originally Posted by StuBeck View Post


    What companies have MS run into the ground? And why do people see this as a horrible thing?



    Microsoft are like the anti-Midas, things turn to poop instead.
  • Reply 11 of 101
    How deliciously evil. Good job I didn't get too used to Flickr I guess.
  • Reply 13 of 101
    asciiascii Posts: 5,936member
    Yahoo has the oldest and best email, and easiest to use small business hosting IMO. Or should I say *did* have.
  • Reply 14 of 101
    "Today, the market is increasingly dominated by one player who is consolidating its dominance through acquisition," he added.



    Balmer doesn't see the irony in that statement, or does he just have a mental disorder?
  • Reply 15 of 101
    If yahoo is bought out by Microsoft, though i'd think the government would have issues with this... it's only a matter of time before they make Flickr a mess, just as they've made Hotmail into crap... grrr
  • Reply 16 of 101
    e1618978e1618978 Posts: 6,075member
    Another reason that this will fail is that windows is the OS for losers, and most competent tech people hate Microsoft. I'm sure that Yahoo will have an exodus of their best and brightest if this happens, including a lot of BSD folks.
  • Reply 17 of 101
    jeffdmjeffdm Posts: 12,951member
    Quote:
    Originally Posted by GuyInFlorida View Post


    Not buying the stock... but I don't trust M$. I think it is time to get a dotMac account.



    For what? There are other alternatives for email, photo sharing, search and so on.
  • Reply 18 of 101
    Quote:
    Originally Posted by always13 View Post


    If yahoo is bought out by Microsoft, though i'd think the government would have issues with this... it's only a matter of time before they make Flickr a mess, just as they've made Hotmail into crap... grrr



    baldmer, lol.... That guy just looks evil! He always looks like he's scheming some kind of evil takeover plot...
  • Reply 19 of 101
    So NOW Microsloth is concerned about "a credible alternative" in the software market?! Damn, but they didn't seem so "concerned" when they were 99.9% of the OS market! Fscking hypocrites.
  • Reply 20 of 101
    I like yahoo classic mail more than gmail. I have both. I also enjoy the interface with yahoo news and the new yahoo search. I have both toolbars on my IE browser at work. I will let this play out. I will probably cancel yahoo---I do have this visceral and often irrational hatred for MS.



    When SJ eventially retires-hopefully, several years from now, I would like Google to then buy Apple. Apple and Google seem to have all of the creative juice these days.
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