Microsoft hostile bid on yahoo
Friday, February 01, 2008
Just heard of Microsoft's hostile bid on Yahoo at 62% premium at Thursday's stock price. What is exciting is how the people are actually looking at Microsoft as a savior for Yahoo. They think that yahoo has never used its full potential in internet domain and the aggression needed in the competitive world of today is just missing.
Well I am traveling right now, but the outcome should definitely bring me back for yet another post! Will appreciate posts on the brand value comparison of the two.
Microsoft's proposal to Yahoo's board of directors represents $31 per share (a 62% premium over yesterday's closing price) or about $44.6 Billion. Steve Ballmer, CEO and big fan of developers, says, "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." Apparently, the deal was laid out in a letter sent by Ballmer to Yahoo's board just yesterday. Seriously. The letter confirms that the two giants have been discussing the topic since late 2006. It also appears to be a direct response to the Google threat as outlined in the following paragraph:
"Today, the market is increasingly dominated by one player who is consolidating its dominance through acquisition. Together, Microsoft and Yahoo! can offer a credible alternative for consumers, advertisers, and publishers."
The deal, of course, rests on the two coming to a "merger agreement" and Microsoft having the time to conduct the required due diligence. Microsoft is ready to begin immediate discussions and have a draft merger agreement ready for consideration.
"Today, the market is increasingly dominated by one player who is consolidating its dominance through acquisition. Together, Microsoft and Yahoo! can offer a credible alternative for consumers, advertisers, and publishers."
The deal, of course, rests on the two coming to a "merger agreement" and Microsoft having the time to conduct the required due diligence. Microsoft is ready to begin immediate discussions and have a draft merger agreement ready for consideration.
Well I am traveling right now, but the outcome should definitely bring me back for yet another post! Will appreciate posts on the brand value comparison of the two.
Labels: Brand Check, MnA, New Trends
posted by Jas @ 4:14 PM,
2 Comments:
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At February 05, 2008 7:41 PM,
Pilot-Pooja said...
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Hey i am really waiting for the next thread of this post..
How will google strike back to this merger..
I really want to know how this merge will help Microsoft..!
Not so good at statistics, but i feel $31 per share is a little less. -
At February 13, 2008 1:31 AM,
Jas said...
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I guess Yahoo read you! Last heard it had rejected offer on grounds of less valuation :)
Kudos!
