| Microsoft has given up buying Yahoo!??? | |
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| May 4, 2008 02:41 |   |
 | According to the source, Microsoft has withdrawn its bid to buy Yahoo! due to price dispute. Originally, MS was going to buy Yahoo! at the expense of $47.5 billion, or $33 per share. However, Yahoo! thought that the bid didn't reach their demand, $53 billion, or $37 per share at least. "After careful consideration, we believe the economics demanded by Yahoo! do not make sense for us, and it is in the best interests of Microsoft stockholders, employees and other stakeholders to withdraw our proposal," Ballmer said in the letter. "Clearly a deal is not to be." Why did MS withdraw its bid for Yahoo!? Was it just because of the price or is there any other reason? If it was true, how would it affect Yahoo! and MS? |
| May 5, 2008 20:51 | #1 |
| An analyst analyses that MS just uses this tactic to force Yahoo! to come to the negotiating table. Do you think it is possible? After MS gave up its plan to buy Yahoo!, Yahoo!'s shares slumped on Monday. However, MS's shares rised about 5 percent. Some sources reported that the shareholders of Yahoo! were disappointed about the result. |
| May 5, 2008 22:07 | #2 |
| Jimmy, keep watching. The deal, i think, is not easy to be prematured. |
| May 6, 2008 01:11 | #3 |
| I personally think that this is a battle of CEO egos. Ballmer, CEO of Microsoft, is trying his best to rebuild himself as a strong leader, something that he has failed to do thus far, I believe. Yang on the other hand, CEO of Yahoo, is letting down both his employees and his stockholders because he can't bring himself to admit that his company just isn't worth as much as he wants to believe (or give in). Big egos - bad decisions. I read one columnist say that if Yang believed so strongly that his company was worth $37 per share, he ought to increase his own stock options at the current $20 per share. Put your money where your mouth is, sir!! |
| May 6, 2008 01:13 | #4 |
| Also, I agree with MARRIE...this isn't over yet. I think one of two things might happen: 1) Yang tucks tail and agrees to an even lower deal due to stockholder pressure or... 2) Yang gets replaced for passing up this opportunity. |
| May 6, 2008 21:04 | #5 |
| "Jimmy, keep watching. The deal, i think, is not easy to be prematured." Marrie, do you mean that MS still has the opportunity to buy Yahoo!? It is said that Yahoo! tries to cooperate with Google after MS withdrew its bid. MS also seeks cooperation with AOL for My Space. |
| May 6, 2008 21:41 | #6 |
| Jimmy, I have not much ideas on technology. Microsoft co-founders, i think, must predict MS shortcomings that could stagnate MS from growth in the future. It's a business strategic thing, If MS CEO Ballmer cannot win the deal, as he himself said that somebody could replace him who can do well. I heard Ballmer is exellent in Finance and Strategic Planning, which is implied by recent Wall Street punishment on Yahoo who has been upsetting its stakeholder for a long time. As JSummers83 said, Mr Jerry Yang, doesnot seem to give up until he himself is satisfied. Hah, does he seek 50% voting or over and control board of directors after merger, It's Jerry's mgt team that upsets stakeholders! US stockmarket is relatively transparent, just do some search on the filing to see how much option benefits he has and its recent insider trading which it's out there. |
| May 7, 2008 00:00 | #7 |
| Good for Yahoo. Keep the superpowers of computer mfg., software, and internet separate. This is the last vestige of unbiased information for the people to absorb and there doesn't need to be any monopoly involved. |
| May 7, 2008 02:25 | #8 |
| Gary...I understand your concern about the creation of monopolies, but I think there are a few things to think about here. First, Yahoo by no means rejected this offer on a moral basis. Jerry Yang never said to himself "Hmm...I can't allow a monopoly here - so I will, against my better judgment, reject this offer". Second, the merging of software, internet, and computer companies has already begun and won't be stopping any time soon. Microsoft is a prime example - Yahoo wasn't going to give them a key to the internet, just a bigger engine to drive them around. FYI...didn't I just hear that Yahoo ended a test ad partnership with Google this week? |
| May 7, 2008 13:38 | #9 |
| The speculative nature of the stock market (and valuation by stock price) makes the market innately unfair. I have always used Yahoo and love what it represents. It is the first great search engine and it is one the key reasons why instant messaging and Web email is very popular. Yahoo's Flickr is also a great service, although it's always blocked in China. Is Yahoo worth all the money Yang thinks it is? No one can really tell--it's all speculation. I think Yang doesn't care much for the stock market as much as investors and Yahoo employees who own stock. But he cannot fight it. If the market says his company is not worth sh*t, he cannot sell it for more than that. If Yang really has great ideas that will save Yahoo up his sleeve, he should talk to the press and drive the stock price up. Or he can just cash in and start a new great company that will give both Google and Microsoft a run for their money. |
| May 7, 2008 21:42 | #10 |
| The latest news said that Jerry Yang had announced that Yahoo! would like to renegotiate with MS due to the drastic slump of its share. On May 6th, Yahoo! share reduced to 24.37 dollars. It meant that the market value of Yahoo! share hads evaporated about 15 percent. Many analysts predict that MS will buy Yahoo! at the expense of $33 per share. |
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