http://news.yahoo.com/s/ap/20080201/ap_on_...7I0UeX58LCs0NUE
Microsoft offers $44.6B for Yahoo
By MICHAEL LIEDTKE, AP Business Writer
29 minutes ago
2-1-8
SAN FRANCISCO - Microsoft Corp. has pounced on slumping Internet icon Yahoo Inc. with an unsolicited takeover offer of $44.6 billion in its boldest bid yet to challenge Google Inc.'s dominance of the lucrative online search and advertising markets.
The surprise offer of $31 per share, made late Thursday and announced Friday, seizes on Yahoo's weakness while Microsoft tries to muscle up in a high-stakes battle with Google likely to define the technology landscape for years to come.
In a statement Friday, Yahoo said it will "carefully and promptly" study Microsoft's bid.
With its profits steadily sliding, Yahoo's stock slipped to a four-year low earlier this week and a new management team has been trying to steer a turnaround but sees more turbulence through 2008.
The announcement lifted Yahoo's share price by almost 50 percent in morning trading, while Google fell more than 8 percent, dragged down by a fourth-quarter earnings report that missed Wall Street expectations.
In conference call Friday morning, Microsoft Chief Executive Steve Ballmer indicated he won't take no for an answer after Yahoo rebuffed takeover overtures a year ago.
"This is a decision we have — and I have — thought long and hard about," Ballmer said. "We are confident it's the right path for Microsoft and Yahoo."
Besides the question of Yahoo's acceptance, Microsoft's bid also faces regulatory scrutiny in Washington and Europe. On Friday, the Justice Department said it is "interested" in reviewing antitrust issues. European Union officials declined to comment.
To underscore its resolve, Microsoft is offering a 62 percent premium to Yahoo's closing stock price Thursday. If the deal is consummated, it would be by far the largest acquisition in Microsoft's history, eclipsing last year's $6 billion purchase of online ad service aQuantive.
Since reaching a 52-week high of $34.08 in October, Yahoo shares have fallen 46 percent. Yahoo climbed $8.62 a share, or 45 percent, to $27.80 in afternoon trading. Microsoft shares fell $2.22, or 6.8 percent, to $30.38.
Microsoft publicly disclosed its cash-and-stock offer in hopes of rallying support from Yahoo's shareholders, making it more difficult for Yahoo's board to turn down the bid.
In a letter released Friday, Ballmer pointedly noted Yahoo's financial performance has deteriorated since Microsoft was spurned a year ago. At that time, Ballmer said he was told Yahoo believed it was better off on its own.
"A year has gone by, and the competitive situation has not improved," Ballmer wrote in his letter.
Microsoft's previous offer was rebuffed by Terry Semel, who stepped aside last year as chief executive under shareholder pressure.
Microsoft sent its latest takeover offer to Yahoo late Thursday, shortly after Semel resigned as the company's chairman. The letter is addressed to Semel's successors, new Chairman Roy Bostock and the current CEO, co-founder Jerry Yang, who is one of Yahoo's largest shareholders.
In a prepared statement, Yahoo said its board "will evaluate this proposal carefully and promptly in the context of Yahoo's strategic plans and pursue the best course of action to maximize long-term value for shareholders."
Microsoft views Yahoo as its best chance to thwart Google, which has leveraged its leadership in Internet search and advertising to emerge as an increasingly serious threat to the world's largest software maker's persuasive influence on how people interact with computers.
Google already controls nearly 60 percent of the U.S. search market, and has been widening its lead, despite concerted efforts by both second-place Yahoo and third-place Microsoft. By combining, Microsoft and Yahoo would have a 33 percent share of the U.S. search market, according to the latest data from comScore Media Metrix.
By joining forces, Microsoft and Yahoo also would widen their narrowing advantage over Google in providing free e-mail accounts — a service that helps foster more loyalty with users and create more advertising opportunities.
Advertisers around the world are expected to double their spending on the Internet during the next three years as more people get their news and entertainment on the Web instead of television, radio, newspapers and magazine. The trend is expected to create an $80 billion online ad market in 2010, up from an estimated $40 billion last year.
Despite an aggressive push in recent years, Microsoft's online advertising expansion hasn't paid off. Last week, the Redmond, Wash.-based company reported a 79 percent jump in its overall profit, but its online division's loss widened to $245 million.
And Yahoo has been struggling to attract more advertising even though its Web site attracts one of the biggest audiences. The Sunnyvale-based company's profit has declined for five consecutive quarters, prompting plans to cut 1,000 jobs later this month, a 7 percent reduction of its 14,300-employee work force.
Besides helping to boost its online ad revenue, Microsoft believes it could mine more profit from Yahoo by jettisoning workers and eliminating overlapping operations.
Microsoft said it sees at least $1 billion in cost savings if it buys Yahoo. Microsoft executives deflected questions about how many jobs might be lost, but the company emphasized retention packages will be offered to Yahoo engineers and other key employees, including some executives.
The fate of Yahoo's brand also is unclear if Microsoft takes over. Both Ballmer and Kevin Johnson, president of Microsoft's platforms and services division, hailed Yahoo's strong brand value but didn't commit to keeping the name alive.
Full Version: Microsoft offers $44.6B for Yahoo
sky, just curious as to what your point is?
From the article, it does not look like Microsoft or Yahoo have been beating up the 300 pound gorilla.
Do you Yahoo???
From the article, it does not look like Microsoft or Yahoo have been beating up the 300 pound gorilla.
Do you Yahoo???
QUOTE(Dada Cesare @ Wednesday, 13 February 2008, 4:31 pm) 
sky, just curious as to what your point is?
From the article, it does not look like Microsoft or Yahoo have been beating up the 300 pound gorilla.
Do you Yahoo???
From the article, it does not look like Microsoft or Yahoo have been beating up the 300 pound gorilla.
Do you Yahoo???
My point is, Micro soft has not been able to even compete with Google. So, instead of being innovative and offering a better, smarter product, they throw out billions and buy somebody else's idea.
Just like they always do, aka windows = apple.
And how has Yahoo done?
What ideas do you think that Yahoo has that is so BIG?
Do you Yahoo?
[That is my point.]
What ideas do you think that Yahoo has that is so BIG?
Do you Yahoo?
[That is my point.]
QUOTE
Just like they always do, aka windows = apple.
I think you mean Xerox, right?
QUOTE(Dada Cesare @ Wednesday, 13 February 2008, 10:01 pm)
And how has Yahoo done?
What ideas do you think that Yahoo has that is so BIG?
Do you Yahoo?
[That is my point.]
I think you mean Xerox, right?
What ideas do you think that Yahoo has that is so BIG?
Do you Yahoo?
[That is my point.]
I think you mean Xerox, right?
No sir, I mean that Gates stole the windows idea and changed it just barely enough to beat the law.
If Yahoo is no big deal, why offer 45 BILLION to buy it?
QUOTE(sky of mind @ Thursday, 14 February 2008, 7:19 am)
No sir, I mean that Gates stole the windows idea and changed it just barely enough to beat the law.
If Yahoo is no big deal, why offer 45 BILLION to buy it?
If Yahoo is no big deal, why offer 45 BILLION to buy it?
Xerox
QUOTE
In 1970, under company president Charles Peter McColough, Xerox opened the Xerox PARC (Xerox Palo Alto Research Center) research facility. The facility developed many modern computing methods such as the mouse and the graphical user interface. From these inventions, Xerox PARC created the Xerox Alto in 1973, a small minicomputer similar to a workstation and personal computer. The Alto was never commercially sold, as Xerox itself could not see the sales potential of it. In 1979, several Apple Computer employees, including Steve Jobs, visited Xerox PARC, interested in seeing their developments. Jobs and the others saw the commercial potential of the GUI and mouse, and began development of the Apple Lisa, which Apple introduced in 1983.
Heck Trash 80 had a tabbed GUI interface that still seems familiar to Windows and Apple.I don't believe it was no big deal. Only it is big for other reason than what you seemed to state at first.
Do you Yahoo?
QUOTE(Dada Cesare @ Thursday, 14 February 2008, 9:11 am)
XeroxHeck Trash 80 had a tabbed GUI interface that still seems familiar to Windows and Apple.
If you will recall, it was the lawsuit between MS and Apple that settled this issue.
And beyond these specifics, MS has gotten where they are NOT through innovation or invention!
I don't believe it was no big deal. Only it is big for other reason than what you seemed to state at first.
What exactly did I state?
Do you Yahoo?
If you will recall, it was the lawsuit between MS and Apple that settled this issue.
And beyond these specifics, MS has gotten where they are NOT through innovation or invention!
I don't believe it was no big deal. Only it is big for other reason than what you seemed to state at first.
What exactly did I state?
Do you Yahoo?
QUOTE
Microsoft offers $44.6B for Yahoo, if ya can't beat um, buy um!
At first I thought you might have thought of Google being bought out. And you don't think Apple looks at the innovations that Microsoft does?
Do you Yahoo?
QUOTE(Dada Cesare @ Thursday, 14 February 2008, 10:09 am)
At first I thought you might have thought of Google being bought out.
And you don't think Apple looks at the innovations that Microsoft does?
Do you Yahoo?
And you don't think Apple looks at the innovations that Microsoft does?
Do you Yahoo?
Certainly, didnt say they don't
Would you care to explain why you feel the need to defend Microsoft?
Does Microsoft need defending?
OK.
For myself, I think Apple needs to be defended for putting out lies on their TV ads.
And by the way...
Do you Yahoo?
QUOTE
Would you care to explain why you feel the need to defend Microsoft?
Does Microsoft need defending?
No need, just always curious as to what people think when attacking Microsoft.Does Microsoft need defending?
For myself, I think Apple needs to be defended for putting out lies on their TV ads.
And by the way...
Do you Yahoo?
QUOTE(Dada Cesare @ Thursday, 14 February 2008, 10:37 am)
OK. No need, just always curious as to what people think when attacking Microsoft.
For myself, I think Apple needs to be defended for putting out lies on their TV ads.
And by the way...
Do you Yahoo?
For myself, I think Apple needs to be defended for putting out lies on their TV ads.
And by the way...
Do you Yahoo?
I still own and use a PC desktop and a laptop, both of which use Windows.
None the less, Microsoft has a dismal track record for innovation and invention.
I don't condem them for their business abilities, I rail on the fact that MS didn't invent anything.
And to compete with Google, the feel the need to buy what could be their best competitor,
instead of making their own that offers something Google does not, that people would want.
But no, MS doesn't work that way. They will buy and then drown the market with money, and in the end own the market. But as I said, not because they did anything innovative or by offering a better product.
OK, I think I understand your position a little better.
In closing I would like to sum up my position.
1. Yahoo and others including Microsoft have been losing ground on Google (300lbs).
2. Unless we want only one survivor (Google) there may be some consolidation in certain markets.
3. Microsoft is an innovator in its own right but that is more trivia that I will pass on for now, but obviously not enough for you.
4. At the time IE was the best, but now I use Firefox. I tried Netscape when it came out and it was a piece of
But this picture is kind of interesting: http://upload.wikimedia.org/wikipedia/comm...eb_browsers.svg
Do you Yahoo?
In closing I would like to sum up my position.
1. Yahoo and others including Microsoft have been losing ground on Google (300lbs).
2. Unless we want only one survivor (Google) there may be some consolidation in certain markets.
3. Microsoft is an innovator in its own right but that is more trivia that I will pass on for now, but obviously not enough for you.
4. At the time IE was the best, but now I use Firefox. I tried Netscape when it came out and it was a piece of
But this picture is kind of interesting: http://upload.wikimedia.org/wikipedia/comm...eb_browsers.svg
Do you Yahoo?
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