|
In a move that could change the pecking order of the Internet search and advertising marketplace, Microsoft has made an unsolicited bid to purchase ailing Yahoo. In a letter sent to Yahoo's board of directors, Microsoft offered $44.6 billion in cash and stock for the troubled company; what's more, it has also been revealed that Microsoft explored an offer a year previous only to be rebuffed by Yahoo because of their confidence in the operational changes they were making at the time. (Source: cnn.com)
The last year, however, has been difficult for Yahoo. Their new ad delivery platform was delayed, Terry Semel, their CEO was forced to step down, and its share prices have steadily dropped. Yahoo shares have lost more than 30% of their value since November of last year. Yahoo's earnings in the 4th quarter and sales forecast for 2008 followed the company's Tuesday announcement that it would be laying off 1,000 employees by mid-February, the first reduction-in-force ever experienced by the company. These events immediately triggered speculation that Yahoo would be acquired. (Source: marketwatch.com) Historically, Microsoft has shied away from large acquisitions. Nonetheless, a Yahoo absorbed by Microsoft would change the rules of the search industry and could effect a better competitive front to Google. Even with only half of Google's online revenues, Yahoo remains a strong contender in content aggregation and in building online communities. If the search engine itself was fortified it could greatly benefit Microsoft's user and consumer orientation. The problem is that some analysts think that Microsoft could not handle the level of effort needed to integrate Yahoo into its operations and already has too much on its plate. They worry that absorbing Yahoo might weaken Microsoft's Windows and Office products just as new alternative applications are emerging on the market. (Source: informationweek.com) Regardless, the stock has already responded well to the possibility of a takeover. The rest of the market, however, will have to hold their breath to see what happens next.
-- Related newsletter articles:
2007/12/07 What Crap Did We Search for This Year? (search)
2007/12/13 Microsoft Testing XP on $100 Laptops (microsoft)
2007/12/14 Microsoft Taps into Multi-Map (microsoft)
2008/01/15 Microsoft Faces (Another) Euro-probe (microsoft)
2008/01/07 Can a Guy Named Jimmy Wales Kill Google? (search)
2008/01/23 Yahoo Mail Gets a Face(book) Lift (yahoo)
2007/12/04 Thousands of Infected Links Weeded Out (search)
2007/12/19 Microsoft Updates Hinder More than Help (microsoft)
2008/01/11 Microsoft Mulls Future of HD (microsoft)
2008/01/17 Microsoft Taking Steady Steps with Zune (microsoft)
2007/12/19 Looking for Zune (microsoft)
2008/01/25 First Vista Update Already Imminent (microsoft)
2008/01/22 Yahoo Backs OpenID Scheme (yahoo)
2007/12/18 Microsoft Soaks Up CNBC.com (microsoft)
2007/12/24 Google Calls Microsoft Outside (microsoft)
-- Recent articles (from all channels): 2008/05/13 Today in History: for Tuesday, May 13, 2008
2008/05/13 [ShellX 20080513]: 'Drive Spacio', and 'Youtube Batch Downloader'
2008/05/13 Congressman Calls For Second Life Ban In Schools
2008/05/13 Trying to Exit MS Excel 2007
2008/05/13 Problems Reported With Windows XP SP3
2008/05/12 [ShellX 20080512]: 'Remote Manager', and 'Cyber Bandwidth ...
2008/05/12 Video Gaming Trade Group Struggling
2008/05/12 T-Mobile Finally Joins 3G Phone Race
2008/05/12 Apple Slammed by Environment Watchdog
2008/05/09 [ShellX 20080509]: 'Advanced Run', and 'Diver Windows Manager'
2008/05/09 Texas Refuses Facebook Friend Request
2008/05/09 Photo-Enforcement Technology Replaces Officers On Patrol
2008/05/09 Cuban Government Says 'Ok Computer'
2008/05/09 Excel Can E-Mail Your Weekly Reports For You!
2008/05/08 [ShellX 20080508]: 'Shell Enhancer', and 'Lansweeper'
2008/05/08 Xobni: MS Outlook Social Networking Technology for your Inbox
2008/05/08 Music Companies Jump on GTA IV Bandwagon
2008/05/08 Fascinating: Memristor to replace Binary
2008/05/08 Adobe Hopes To Make Flash Master Of The (Mobile) Universe
2008/05/08 Spiffy Envelopes and Labels in MS Word
2008/05/07 [ShellX 20080507]: 'Winbin2iso', and 'Loop Typer'
2008/05/07 Yahoo Adds Security Warnings To Search Results
2008/05/07 Apple to Lose Money on iTunes Movie Releases
2008/05/07 Amazon.com takes New York Tax to Court
2008/05/07 Need Glasses for the Slide Sorter View in MS PowerPoint?
2008/05/07 After Winning The DVD Format War, Blu-Ray Sales Tank
2008/05/06 [ShellX 20080506]: 'Visual Basic 6.0 Portable', and 'Double-...
2008/05/06 Yahoo Outsources to Jajah
2008/05/06 New HP Circuit Could Change Technology Forever
2008/05/06 Movie Downloads To Match DVD Release Dates
2008/05/06 Microsoft Ends Yahoo Bid
|
