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msn hostile bid for yahoo
Feb 1, 2008 15:13
  • MARRIE
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Microsoft thismorningmade an unsolicited $44.6 billion bid to buy rival Yahoo.

what's the reason behind scene of this merger? what will be the impact on google after several years successful integration between yahoo and msn? some investors say yahoo is vulnerable and they are losing pacience of yahoo's management team. It's seems a prosperous deal by virtue of that msn gets the traffic to door of internet service. And it is said this year there is gonna be more mkt consolidation (merger) in internet technology industry. What do you think of it?

Feb 1, 2008 20:13
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  • JIMMYB
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"it is said this year there is gonna be more mkt consolidation (merger) in internet technology industry."

This is the trend. When the IT industry was developing fast and flourishingly, many people stared this big cake and wanted to make money. The direct result is that too many IT corporations were established so that the competition became fierce. Now, the IT industry is mature and saturated, meger and acquisition is unavoidable.
Feb 2, 2008 04:00
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  • BLUESKY001
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(CEO of Yahoo)Yang Zhiyuan Vs Bill Gates

Yang: I need to think about seriously!



Feb 2, 2008 08:40
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The offer is double the present value of yahoo, I think Jerry Yang and Sue Decker cannot resist it. Users prefer google as search engine. That’s why yahoo lost revenue in search. In addition, its management is becoming more and more bureaucratic in product development. So its stock value is hit 2 year’s the lowest. Now, P/E ratio for google is 21 times based on 2009 earnings. It’s said today’s msn bidding price is still at deep discount coz the predicted P/E of combined yahoo-msn in 2009 is much lower 21 times.
Feb 2, 2008 21:46
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  • LEONARDO
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Microsoft Inc. 's move is to compete with Google. Over years, Microsoft and yahoo have been living in the shadow of Google Inc.'s dominance in Internet search traffic and advertising revenues. Microsoft aims to increase its search engine market share in US. At present, Google takes up almost 60% market share in search engine field. Microsoft only accounts for about 10% of internet search engine market share. Yahoo accounts for 22%. A combined Yahoo and Microsoft would have about a third of the U.S. search audience, but it still lag far behind Google.(60%).

The merge will be good for Yahoo's financial stability. In the last year, Yahoo's finances have deteriorated. Earlier this week, the company announced a 23 percent drop in quarterly profits, then said it would cut some 1,000 jobs — about 7 percent of its workforce.

Search Engine Market Share in US


Feb 3, 2008 09:06
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  • APAULT
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'The merge will be good for Yahoo's financial stability.'

Yahoo is not as successful as Google at present so Microsoft has to make changes. If these are not successful it will do nothing for Microsoft's financial stability, indeed it could worsen it.
Feb 4, 2008 02:08
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  • JIMMYB
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I am with Leonardo. The purpose is to compete with Google and break its manipulation. But I don't think Google will let Microsoft buy Yahoo so easily. It is said that Google might intervine in this matter and cooperate with Yahoo. But the possibility is little. Considering of the anti-monopoly law, it is hard for Google to make a deal with Yahoo. Yahoo also says that Microsoft has underestimated Yahoo's competence. This means $44.6 billion is not enough. Google and Microsoft, who will win this battle?
Feb 7, 2008 13:10
#7  
  • MARRIE
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Insider has got 10% of yahoo holdings and Institution 70%. The subsequent integration, I think, depends on how soon it will take for those institution holders to beat down yahoo so as to let the cost of inventory below 31.
Feb 9, 2008 15:45
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  • MARRIE
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This is a biggest technology takeover and the market has been speculating on yahoo for one year. Yahoo is loosing internet search users and share of the online ads mkt. Although its mkt value hits the lowest in 2 year, its current high P/E ration states it's not worth today's price.

MSN and YAHOO have overlap business but have different corp cultures. Yahoo with a free-flowing, fun-loving attitude is difficult to fit in with the button-up, competitive microsoft, the world's biggest software maker.
So a wave of top-down layoff would be expected during integration.
Feb 12, 2008 21:59
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Yahoo board of directors turned down MS offer that is said to undervalue the internet giant's value.

MS is continuing its efforts via raising offer or taking the bid directly to yahoo's shareholder.

Let's wait and see...
Feb 13, 2008 03:11
#10  
  • JIMMYB
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Marrie, what do you think of this deal? Do you agree that MS merges Yahoo? It is said that Yahoo shareholders think MS' offer is not enough and they ask MS to raise its offer. Do you think it is possible that MS raises its bid?
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