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Microsoft Offers $44.6 Billion To Buy Yahoo! ($31 Share)  (View post)

Search-Engines-Web.com [PersonRank 10]

Friday, February 1, 2008
6 years ago4,838 views

engadget.com/2008/02/01/micros ...

money.cnn.com/news/newsfeeds/a ...

Tony Ruscoe [PersonRank 10]

6 years ago #

WOW!

TechCrunch has the full letter from Microsoft to the Yahoo board:

techcrunch.com/2008/02/01/wow- ...

/pd [PersonRank 10]

6 years ago #

MSFT +YHOO – will the SEC pass this ? it could be a monoploy

PierreS [PersonRank 10]

6 years ago #

Google now has to buy as many FLOSS companies and hire FLOSS devs to prepare an linux-based OS to fight back.

Haochi [PersonRank 10]

6 years ago #

Holy cow... Web War 3.0? Well, I don't think Yahoo!'s board is going to agree though...

dpneal [PersonRank 10]

6 years ago #

Google and Apple? I'd like to see that in response.

TOMHTML [PersonRank 10]

6 years ago #

Am I alone to think Yahoo might refuse this offer?

Ionut Alex. Chitu [PersonRank 10]

6 years ago #

No and it wouldn't be the first time:
ft.com/cms/s/2/94131390-e115-1 ...

Tony Ruscoe [PersonRank 10]

6 years ago #

But times have changed since then. To be honest, it wouldn't surprise me either way. What would surprise me is if Google joined the game. What are the chances?

Ionut Alex. Chitu [PersonRank 10]

6 years ago #

Yahoo is much closer to Google than to Microsoft.

<<Former Merrill Lynch dot com bubble analyst Henry Blodget believes that any acquisition of Yahoo by Microsoft is doomed to failure because of the vastly different corporate cultures involved. >>

itwire.com/content/view/11855/ ...

Above 10 comments were made in the forum before this was blogged,

Ionut Alex. Chitu [PersonRank 10]

6 years ago #

I like this reddit comment:

<<This is a de-facto admission by MS that they are unable to compete on the web.

This is also great news for google. MS will spend almost all it's cash on this deal and will only ruin yahoo. >>

reddit.com/info/67c8q/comments ...

Tadeusz Szewczyk [PersonRank 10]

6 years ago #

One step closer to Googlezon.

Will you keep on using Flickr, del.icio.us, MyBlogLog and the such when it's owned by Microsoft?

/pd [PersonRank 10]

6 years ago #

to all you flickr fans and users.. be ready to pull you pics and store them elsewhere..or put them up in google pic's :)-

Schultzter [PersonRank 1]

6 years ago #

I think there's a very significant hidden side to this industry that most web surfers ignore. Sure, I love Google's minimalist approach and I'm turned away by Yahoo & MSN's glitz. But they don't make their money off my personalized home pages! Considering there's no cost for surfers to switch from using Google to Yahoo to MSN/Live I'm afraid a "war" would cause Google to loose focus on the cool stuff they do that sets them apart from the other two (but probably doesn't generate much cash).

David Mulder [PersonRank 10]

6 years ago #

[put at-character here]Inonut
   Great qoute :P

I really was schocked when I saw this on the news site I use... I first though it was just one more rumor. I never expected it to become real... yet even when it will be passed I guess that it has to go wrong somewhere... they can't keep both companies seperated and as soon as they will try to fuse it will most likely go fatally wrong.

Ionut Alex. Chitu [PersonRank 10]

6 years ago #

Press Conference Call
microsoft.com/presspass/press/ ...

Faux [PersonRank 1]

6 years ago #

I think someone forgot to do a little legal research. Being a monopoly isn't illegal. It's the exercising of monopoly power that is. Further more, a monopoly in what respect? Online Ads? Web presence? What? Since the government doesn't become involved with the question of monopoly power unless and until there is interstate trade, one can only assume the author is referring to online ads? If so, the general prescribed use of monopoly power is controling 65-70% of the relevant market, online ads. Surely Microsoft and Yahoo, combined, will not control that large share.

Luka [PersonRank 10]

6 years ago #

Microsoft Powerpoint about this :

docs.google.com/Presentation?i ...

Mrrix32 [PersonRank 10]

6 years ago #

Microsoft buy Yahoo? Thats about as likely as Google buying YouTube....... oh.. right.

Must be serious it was on the news on the radio, tech stories don't usualy get much covarage

If you can't beat them buy them and try to beat someone ele?

/pd [PersonRank 10]

6 years ago #

[put at-character here]Faux – we all heard that story of "monopoly power is controling 65-70% of the relevant market," – your correct on that , it just not market space , its about also about creating a wall garden effect.. remember the IE issue's and then the DOJ cases ..

MSFT did not come out favorably on that round. What I am saying is that the SEC/DOJ may not want to go thru with another round of of near practically the same thing. Remember Hailstorm/passport were failed options and yahoo adopted OpenID – will MSFT preserve these platforms for the community at large ?

Brinke Guthrie [PersonRank 10]

6 years ago #

msnbc.com: BREAKING NEWS: Microsoft bids $44.6 billion for Yahoo

does this mean i HAVE to have a hotmail ID? wow.

dpneal [PersonRank 10]

6 years ago #

looking at it a different way...

could this be good news for google? It's two competitors combined into one. Losing several users on the way (because they don't like microsoft) And it only really has to compete with one company then. Plus even if MS and Yahoo join, Google will still have a larger share of the market (still nearly double).

Faux [PersonRank 1]

6 years ago #

PD,

You bring up a good point about the Microsoft Antitrust case. That, however, is different. That was about a tieing arrangment. In sum, Microsoft had a monopoly, which is not illegal, over the OS market. However, it used it monopoly power to influence another market, internet browsers. Therefore, microsoft, by use of its monopoly power in one market, 65-70% at least of the OS market, to affect the tied market, internet browsers.

This situation with Yahoo, however, is completely different. They do not have market power in any of the potential areas. I just cannot see how an assertion such as the SEC prohibiting this because of a fear of monopolization. All they are doing is creating competition, which is the purpose of the antitrust laws

Now granted, the argument may be raised that they are hurting competitors. But, that is not what antitrust laws are designed for. Not protection of competitors, but for the protection of consumers.

All microsoft would do is buy a company which controls roughly 12% of the internet search market. That would bring an aggregate of 17% total control of the search market. Hardly enough to raise eyebrows.

As for ads, if that is what the fear is over, then why did the SEC approve googles purchase of AdSense? Because the argument was raised, and with apparent approval, that the relevant market are all ads, not just online ads.

This is not a monopoly.

/pd [PersonRank 10]

6 years ago #

#faux, I agree it tends to look (on the surface) its all about the seach market space..

but this value prop also impact the properties within YHOO.. think of MSFT now has control of a vast social community network and enforces – no OPENID for e.g ?

another thing if the deal goes thru, then think of popfly on steriods.. this is certainly a landscaping event.. maybe the 21st century is about to begin :)-

and btw, In the light of what you said, mea culpa-- I'll take back my words on "monopoly" and eat my own dog food (for the time being .. :)-

Philipp Lenssen [PersonRank 10]

6 years ago #

DPNeal, I don't think a merged Microsoft + Yahoo in itself would be a bigger competitor in itself... however, merging means a lot of possibilities of "cross integration" like; Yahoo search being a default in Internet Explorer, or Flickr being integrated as clip arts base into PowerPoint, or MSN now redirecting to Yahoo instead, Yahoo IM becoming fully interoperable with MSN Messenger (well, in case that's not already so), more of each other's stuff in bundleware downloads, more default checkboxes in various boxes set to Yahoo/ MS (e.g. you downloaded the Yahoo Toolbar for Firefox, and it would ask you "would you also like to swich to Internet Explorer as your default browser?"), and so on.

But yeah, there's also seems to be a chance a merger would just pull down Yahoo due to MS-web-cluelessness, or because together they'd be too big to move quickly....

Faux [PersonRank 1]

6 years ago #

PD,

My goal wasn't to prove you wrong, but to encourage discussion. The first thing I thought of when you mentioned monopoly was, in what market. Now I may be wrong, there could possibly be a market which this would effect in a monopoly sort of way, not legalise obviously. But I can't think of one, which doesn't mean much since I am not the smartest guy around though.

But unless your dog food is purina, don't eat it, I don't want you to get that crazy China dog food! :)

/pd [PersonRank 10]

6 years ago #

Philipp – on the other hand this is a biz deal.. here's a comment /chatter that popped into the back channels ..

"who CARES if microsoft ruins them...you will get MSFT's price IF deal
goes through. WIN WIN situation."

if the major stock holder want their mone, they will sale- and then the rest becomes history.... right now its about a biz deal and $$$$$

/pd [PersonRank 10]

6 years ago #

[put at-character here]faux – actually it is "purina"!! – here's an old posting of mine :)-
peterdawson.typepad.com/blog/2 ...

/pd [PersonRank 10]

6 years ago #

Excellent opinion here ;

"Put Microsoft evangelism behind Yahoo, with an injection of web DNA, and the results could be really sweet. "

redmonk.com/jgovernor/2008/02/ ...

Floris [PersonRank 1]

6 years ago #

I fear for YUI and other web developer resources. I hope it won't have an effect.

Sam Davyson [PersonRank 10]

6 years ago #

I'm not sure about this. Seems weird. It will take a lot of work to sort everything out... Yahoo is pretty messy as it is (with multiple services in a few areas due to acquistions.... hence the recent closings of Yahoo Photos, Yahoo 360 etc.) and this will lead to loads of duplications.

I only use Flickr and del.icio.us. And del.icio.us is dispensible to me but Flickr is not. I sure hope they don't f*** it up.

Sam Davyson [PersonRank 10]

6 years ago #

Extra point: I think whatever the weather it will take a long time for anything to change at Yahoo.

Jason Adams [PersonRank 1]

6 years ago #

I'm guessing increased Flickr fees, lack of free accounts, integration with Windows that makes it impossible to use on Linux, etc. Or maybe that's just rampant cynicism talking.. :P

/pd [PersonRank 10]

6 years ago #

most consumers will walk away from Flickr, (if its touched!!). The feeling among the Twittersphere is that if Microsoft succeeds, then there will be a high level of defection.

[put at-character here]Jason, nothing is stopping MSFT to have two different plattform strategies – one built on ATLAS and the other built on Open sources. times are changing and time itself will tell.

"in the begining there were two and then it become one" – not sure who's quote that was..

Stephen Tordoff [PersonRank 10]

6 years ago #

news.com/Microsoft-bids-44.6-b ...

"In its response, Yahoo called the Microsoft bid "unsolicited" but did not reject it."

/pd [PersonRank 10]

6 years ago #

Kudos to Richard Brandt , who predicated this move , early last year!!

"Yahoo is destined to be acquired. I predict Microsoft will buy it, perhaps by the end of this year."

richardbrandt.blogs.com/richar ...

YaSoft [PersonRank 0]

6 years ago #

valleywag.com/351561/the-decli ...

The decline and Fall of Yahoo –

summarized by ValleyWag with a few comments by Ex Yahooglers

J. McNair [PersonRank 10]

6 years ago #

Yahoosoft? or Microhoo...Nah, it'll just be "Microsoft Yahoo" or "Yahoo: a Microsoft Company".

An earlier poster mentioned the vastly different internal corporate cultures. I'd like to think MS will be clever about it, but it will take YEARS for any true integration to come about. And yes, Virginia, there may be layoffs (due to elimination of redundancies).

I'd like to see the following
1. Drop the MSN brand completely. Keep only Live and Yahoo brands.
2. Visual Studio for Cross Platform Web Applications could be the Best Thing Ever if handled correctly. DON'T kill off Yahoo's open source commitment.
3. Allow federation of Live and Yahoo/Open ID accounts and linking them all together in a chosen "master" account. I know this will take years because of the MASSIVE amount of time, effort, servers and code invested in each mail service.
4.Flickr, Yahoo Movies or any cool thing Yahoo does should stay cool. XBox Live, Maps/VE, and any cool thing Microsoft does should stay cool.
5. Be NICE to Opera and Mozilla.
6. Compete fairly with the GOOG, which might scare them back into rapid innovation.

/pd [PersonRank 10]

6 years ago #

inresting tidbit!!

"Early this morning Goldman made an awfully timely call, putting out an analyst note at 3:56am PST suggesting that Microsoft should buy Yahoo – only to freeze analyst coverage of Microsoft at 6:55 AM PST on the news that Microsoft has offered to buy Yahoo"

Roger Browne [PersonRank 10]

6 years ago #

Let's see ... Yahoo is struggling. Microsoft offers way above the share price. If I had Yahoo stock I'd be very happy to accept Microsoft's offer, but then I'd sell my Microsoft stock right away because I don't think Microsoft has made a wise move.

If I had a flickr account, I'd start looking around for alternatives too. No urgency, but I'd be keeping an eye open.

I do use YahooGroups, but it's easy enough to do without them if they go downhill (which they've been slowly but surely doing for a while anyway in my opinion).

I do use YUI. The existing code is not going to stop working overnight, but if Microsoft started to tilt YUI towards Internet Explorer I'd desert the ship.

I read somewhere a study which showed that, on average, combined companies were financially less successful than the sum of the two separate companies. I can certainly see that happening here.

macbeach [PersonRank 6]

6 years ago #

I have a feeling that the Feds won't approve this, but if they do it could be great news for Google. The combined Yahoo and Microsoft will be a nightmare to clean up and in the process even more user attrition will occur.

Google, of course has to be careful to not grow its offerings into the same type of monstrosity that Yahoo and to a lesser extent Microsoft have already created. The execs and sales types have a tendency to overwhelm any technology organization's ability to integrate new functionality. Google, up to now has been driven by its engineering talent. How much longer will that last?

TOMHTML [PersonRank 10]

6 years ago #

The offer makes the Front Page everywhere


farm3.static.flickr.com/2201/2 ...



[via : flickr.com/photos/lmg/22344511 ...]

Philipp Lenssen [PersonRank 10]

6 years ago #

Update (also added to the post): Yahoo released a small FAQ for this “unsolicited proposal,” as they call it:

<<How is Yahoo! responding to Microsoft’s proposal?

The Yahoo! Board is undertaking a deliberate review process. They’re going to take time to thoroughly evaluate the proposal in the context of Yahoo!’s strategic plans. This will include evaluating all of the Company’s strategic alternatives – including maintaining Yahoo! as an independent company. That process will take some time, but the Board will ultimately pursue the option that it believes can best maximize value for our shareholders.>>
yhoo.client.shareholder.com/pr ...

Brinke Guthrie [PersonRank 10]

6 years ago #

This deal will go thru. Absolutely. The reason? Shareholders will benefit. Plus Msft/Y will have 33% of the search market, far below Goog, so no worries on antitrust.

It's also not like AOL Time Warner. Those two did that deal when AOL was at the top.

Yahoo's stock just hit a four year low.

That's bout all there is.

DPic [PersonRank 10]

6 years ago #

Brinke Guthrie: I agree the deal will go through. My mom works with this stuff and she's pretty sure it will.

I also don't think this will be so bad for Google although it might scare their investors and please MSFT investors. Microsoft is all about taking over market share, but Google is about good technology. Google doesn't need to buy market share: people are naturally drawn to good technology.

And there's another competitor Microsoft will soon have to watch out for. Microsoft's tactics may please investors right now, but in the long run, they have two huge opponents to tackle. The ever-growing Google, and the ever-growing open source community. Google is much smarter than Microsoft. Microsoft is the big fat conservative businessman while Google is the young, geeky, creative, entrepreneur. Google won't run into the problems microsoft does and will from being so big. The rate at which the open source community grows is exponential. That's why it's been able to progress so far in recent years. I could see free software seriously hurting Microsoft's market share in 3-5 years and after that, taking over the market is inevitable. You can't compete with "free". :)

Just my opinion

Philipp Lenssen [PersonRank 10]

6 years ago #


blogoscoped.com/files/jerry-ga ...



(That's what you get when merge the photos of Jerry Yang and Bill Gates you get this... no stretching used.)

David Hetfield [PersonRank 10]

6 years ago #

Ha ha..
Nice one Philipp! :D

About the deal ;
I think this kind of deal will lead NOWHERE!!!!
MS will lose more market share out of their poor 12% they have..
I dunno.
i just don't think you can wake up one day and decide you're buying a large company. It's not one of Microsoft's smaller rivals. We're talking huge here.

If you ask me,
This deal is impossible, and if it will happen, Google absolutely wins here. Microsoft and Yahoo! will go down as a result.

I love competition. This is what the small people are made of. Let them choose more freely..

Zim [PersonRank 10]

6 years ago #

If this comes true, Google's motto is going to change:
"Don't be yahoo."

This is scarry, this means that my flickr, my lovely flickr, is going to be in MS hands, and I do not want that.
Gosh.

David Hetfield [PersonRank 10]

6 years ago #

^
[Up] blogoscoped.com/forum/122329.h ...

:D

Kenny [PersonRank 0]

6 years ago #

This is surely a huge chance for Google to promote Picasa Web Albums like never before. I know there is an FTP extension for Firefox that allows you to bulk download all your Flickr photos. If only Google could provide a tool that would import both full size photos and tags.

Like many, Flickr is the only Yahoo property I'm particularly loyal to these days, but today's news has me seriously considering cutting my ties there too.

Brinke Guthrie [PersonRank 10]

6 years ago #

Will Microsoft save Silicon Valley from Google?

techland.blogs.fortune.cnn.com ...

PS
great link on MSN and Y! portals thru the years

news.com/2300-1030_3-6228846-1 ...

Rohit Srivastwa [PersonRank 10]

6 years ago #

I wonder how Sergey breaks these news to Larry.

Sergey: Hey Larry, M$FT again trying to buy YHOO.

Larry: Busy talking to my mom Sergey, will talk later, let them do what they want to :)

Colin Colehour [PersonRank 10]

6 years ago #

The review process by the FTC and the EU would take forever on this purchase if it gets approved by the Yahoo! Board.

Sankar Anand [PersonRank 10]

6 years ago #

ndtvprofit.com/2008/02/0117303 ...

Sankar Anand [PersonRank 10]

6 years ago #

i saw the local channel..

NDTV it said Microsoft buys 32% of yahoo share. But no news online..

Marcin Sochacki (Wanted) [PersonRank 10]

6 years ago #

[put at-character here]Kenny:
There is a Fx extension which works with Picasa Web Albums:
addons.mozilla.org/en-US/firef ...
and other programs too. I believe they are based on the open Gdata API:
code.google.com/apis/picasaweb ...

Not sure if the API supports tags though.

GuillaumeB [PersonRank 9]

6 years ago #

I'm so upset to observe where Yahoo is going. This is gonna a huge mess all around Microsoft. Their Live products already live along MSN websites and now they want Yahoo? I mean seriously WTF.
Google is popular for one reason: homogeinity
This is not gonna go anywhere at all and Google will be even stronger than before

Search-Engines-Web.com [PersonRank 10]

6 years ago #

UPDATE:

alleyinsider.com/2008/02/micro ...

Microsoft has illustrated that it's not going to take "no" or "not now" for an answer, and given the jubilation with which Yahoo shareholders reacted to its offer, it will likely want to keep the public pressure on Jerry and his team. Microsoft will also likely want to remind Yahoo's shareholders and managers soon that it's not going to wait forever for a response. Microsoft can still launch a proxy fight, and if it continues to get the silent treatment from Sunnyvale it will likely want to demonstrate that it is prepared to go that route.

/pd [PersonRank 10]

6 years ago #

If MSFT had liquid cash of $44.6B , they could goin for a hostile takeover – just buy up the open market shares of YHOO until they get enough to hold a seat at the board.

Unfortunately M&A monies are all paper.. and not liquid.

Bilal [PersonRank 10]

6 years ago #

this is an invasion, didn't they have what to do with money?
A QDOS story again!!!

Why don't you try to buy Google too!!!
o-(

Brinke Guthrie [PersonRank 10]

6 years ago #

from the google blog;

Yahoo! and the future of the Internet
  
2/03/2008 11:45:00 AM
Posted by David Drummond, Senior Vice President, Corporate Development and Chief Legal Officer

The openness of the Internet is what made Google – and Yahoo! – possible. A good idea that users find useful spreads quickly. Businesses can be created around the idea. Users benefit from constant innovation. It's what makes the Internet such an exciting place.

So Microsoft's hostile bid for Yahoo! raises troubling questions. This is about more than simply a financial transaction, one company taking over another. It's about preserving the underlying principles of the Internet: openness and innovation.

Could Microsoft now attempt to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC? While the Internet rewards competitive innovation, Microsoft has frequently sought to establish proprietary monopolies – and then leverage its dominance into new, adjacent markets.

Could the acquisition of Yahoo! allow Microsoft – despite its legacy of serious legal and regulatory offenses – to extend unfair practices from browsers and operating systems to the Internet? In addition, Microsoft plus Yahoo! equals an overwhelming share of instant messaging and web email accounts. And between them, the two companies operate the two most heavily trafficked portals on the Internet. Could a combination of the two take advantage of a PC software monopoly to unfairly limit the ability of consumers to freely access competitors' email, IM, and web-based services? Policymakers around the world need to ask these questions – and consumers deserve satisfying answers.

This hostile bid was announced on Friday, so there is plenty of time for these questions to be thoroughly addressed. We take Internet openness, choice and innovation seriously. They are the core of our culture. We believe that the interests of Internet users come first – and should come first – as the merits of this proposed acquisition are examined and alternatives explored.

DPic [PersonRank 10]

6 years ago #

[put at-character here] Brinke Guthrie: i posted that here already :) blogoscoped.com/forum/122499.h ...

Search-Engines-Web.com [PersonRank 10]

6 years ago #

BREAKING:

GOOGLE in alliance talks AGAIN with Yahoo over Microsoft's hostile takeover

2008
reuters.com/article/mergersNew ...

2005
seroundtable.com/archives/0017 ...

Zim [PersonRank 10]

6 years ago #

Hey, that last link was an April's Fools joke, read the comments :)

Anyway, now it's serious, and the unique important date near now is saint valentine's day, which won't be happy if we think about Yahoo and Microsoft.

Search-Engines-Web.com [PersonRank 10]

6 years ago #

UPDATE, MORE DRAMA AND SUSPENSE.....
______________________________________

online.wsj.com/article/SB12021 ...

Google Inc. Chief Executive Eric Schmidt called Yahoo Inc. CEO Jerry Yang to offer his company's help in any effort to thwart Microsoft Corp.'s unsolicited $44.6 billion bid for Yahoo, say people familiar with the matter.

The approach Friday from Google – Microsoft's chief rival on the Internet – came as Yahoo is assessing its options for responding to Microsoft's aggressive "bear hug" bid, which has sent aftershocks through the media and technology industries since its announcement three days ago. People familiar with the matter say Yahoo's board, which conferred by telephone Friday, hasn't taken a position so far and no rival bids have emerged yet, though it remains possible some will.

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