Microsoft Withdraws Offer for Yahoo
Posted by Troll on 04 May 2008 - 03:41 · 60 comments & 11085 views
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#1 Posted by pjak on 04 May 2008 - 04:00
- $37 billion
it's meant to be "$37 a share"...
anyway, at least MS knows their limit.
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#2 Posted by Aleck79 on 04 May 2008 - 04:00
- Microsoft withdrew its offer for Yahoo Inc on Saturday as negotiations fell through on price, even after the software giant raised its bid by about $5 billion to $47.5 billion. Microsoft Chief Executive Steve Ballmer said his company increased its offer to $33 per share, from the $31 per share cash-and-stock bid that it initially made on January 31; however, Yahoo was looking for something more along the lines of $37 billion.
... uhhh, no. They wanted about $37 per share of stock.Microsoft Chief Executive Steve Ballmer said his company increased its offer to $33 per share, from the $31 per share cash-and-stock bid that it initially made on January 31. But Yahoo was looking for $37 a share, Ballmer said.
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(4 replies)
#3 Posted by TRC on 04 May 2008 - 04:02
- I guess resistance isn't futile.
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#3.1 Posted by BigBoy on 04 May 2008 - 13:42
- Once Yahoo's shares plummet now, their resistance to shareholder lawsuits will be futile.
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#3.2 Posted by toadeater on 05 May 2008 - 01:37
- (BigBoy said @ #3.1)Once Yahoo's shares plummet now, their resistance to shareholder lawsuits will be futile.
ROFL. Let's see who lasts longer, Yahoo or MSN. -
#3.3 Posted by GP007 on 05 May 2008 - 02:38
- Like BigBoy said, wait for Yahoo's shareprice to drop like a brick Monday and MS will just buy up 15% on the open market. After that they'll get some support from other major shareholders and come next board meeting, it's game over.
Oh and who will last longer? Easy, MSN/Live. MS has way more money. Hell now that the Entertainment and Devices (Xbox/Zune/Windows Mobile) Devision is making good profits, even that unti of MS will make more money than Yahoo does soon. -
#3.4 Posted by bbfc_uk on 05 May 2008 - 12:22
- (GP007 said @ #3.3)Like BigBoy said, wait for Yahoo's shareprice to drop like a brick Monday and MS will just buy up 15% on the open market. After that they'll get some support from other major shareholders and come next board meeting, it's game over.
Maybe this is their new plan - Let the share price plummet, buy a large chunk and let the rest fall into place...
Smart Move Microsoft - however, do they really want a company that is resisting as much as this, this may ruin any synergies and integration may become a nightmare.
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#5 Posted by excalpius on 04 May 2008 - 04:37
- It would be much better for MS to wait for Yahoo to keep sinking into oblivion (as they have been for years now). But I guess they wanted to grab Yahoo before Google does. Either way, if I was a Yahoo shareholder, I would be ballistic right now. This is the ONLY way they will ever see a decent return for what is essentially a worthless stock. MS was dumb enough to buy...your loss that they didn't.
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(3 replies)
#6 Posted by XerXis on 04 May 2008 - 05:19
- let's see yahoo shares implode now
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#6.1 Posted by +Ledward on 04 May 2008 - 06:55
- so true. although some holders might be holding out for a hostile takeover?
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#6.2 Posted by Jugalator on 04 May 2008 - 10:15
- (Ledward said @ #6.1)so true. although some holders might be holding out for a hostile takeover?
I think Ballmer already said that this wasn't in the interests of MS in their press release. -
#6.3 Posted by HalcyonX12 on 04 May 2008 - 16:46
- (Jugalator said @ #6.2)I think Ballmer already said that this wasn't in the interests of MS in their press release.
Yeah, right before he said: "If we have not concluded an agreement within the next three weeks, we will be compelled to take our case directly to your shareholders, including the initiation of a proxy contest to elect an alternative slate of directors for the Yahoo! board."
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(6 replies)
#7 Posted by atari800 on 04 May 2008 - 05:37
- sha...yahoo...not google....it would like be buying out Mexico instead of Canada....pointless from the begining
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#7.1 Posted by Dogward on 04 May 2008 - 07:34
- I am very hostil to this comment. I am Mexican (proud to be) and your point is totally absurd. Mexico might not be the richiest country in the world, but the people is the best you'll ever know.
Your post is out of nothing and yes, you did touched one of my nerves.
Back on topic... It is the begining of a shareholders implosion.
EDIT: And yet, the USA have allready bought out a part o Mexico (Remember California, New Mexico, Etc...) ... Your comment really made me angry.
Last edited by Dogward on 04 May 2008 - 09:22 -
#7.2 Posted by +Dakkaroth on 04 May 2008 - 08:41
- While atari's comment may not make much sense in relation to the topic at hand, you've basically said the same thing he just said. His comment wasn't exactly directed at the people of Mexico but the overall wealth of the nation.
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#7.3 Posted by CdCViRus on 04 May 2008 - 18:49
- (Dogward said @ #7.1)but the people is the best you'll ever know.
Especially the corrupt, greedy judges!!! (remember the Brenda Martin case??) -
#7.4 Posted by Magallanes on 04 May 2008 - 22:39
- (atari800 said @ #7)sha...yahoo...not google....it would like be buying out Mexico instead of Canada....pointless from the begining
Only in Mexico City there are almost the same population that entire Canada.
Anyways, with the current trend, in a few decades the next United State president will be a "Pancho Villa". :-) -
#7.5 Posted by koppit on 05 May 2008 - 04:40
- (Magallanes said @ #7.4)Only in Mexico City there are almost the same population that entire Canada.
You're kidding me right?
The last pop census had Mexico city at under 20 mil, Canada currently has ~34 mil - that would not be an *almost* statement. -
#7.6 Posted by Dogward on 05 May 2008 - 08:18
- (koppit said @ #7.5)(Magallanes said @ #7.4)Only in Mexico City there are almost the same population that entire Canada.
You're kidding me right?
The last pop census had Mexico city at under 20 mil, Canada currently has ~34 mil - that would not be an *almost* statement.
I guess he just meant that 20 mil for just a city compared to ~34mil for an entire country... it is an *almost* statement.
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#8 Posted by Krome on 04 May 2008 - 05:42
- Finally the battle of the beast came to an end. Google would still be big even if the deal of Yahoo and Microsoft went through. I didn't see Microsoft is going to profit anything from Yahoo but only user-base.
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(7 replies)
#9 Posted by ecotrojan on 04 May 2008 - 07:39
- Does anyone still have Yahoo as their homepage
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#9.2 Posted by huFFamOOse on 04 May 2008 - 10:22
- (Jugalator said @ #9.1)No, I use Lycos ;-)
You're so 90s
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#9.3 Posted by Jugalator on 04 May 2008 - 11:03
- (huFFamOOse said @ #9.2)(Jugalator said @ #9.1)No, I use Lycos ;-)
You're so 90s
But I don't use their search engine. For that, I of course have AltaVista. :p -
#9.4 Posted by ispamforfood on 04 May 2008 - 13:26
- I prefer yahoo as my homepage, over google. There's nothing on google's page that makes me want to spend a lot of time there.... I like that theres actual stuff to DO other than search, on yahoo's homepage.
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#9.5 Posted by +DrCheese on 04 May 2008 - 17:10
- I still do for the news feed bit, although I mainly use google as my search engine nowadays. I suppose I should set up myself an igoogle account and use that instead.
My primary email is still my @yahoo.com one that I've had since 2000 but I'm slowly starting to migrate my stuff over to my personal domain. -
#9.6 Posted by zaidgs on 04 May 2008 - 22:20
- I do, I use Yahoo as an email. And I personally would be more relieved if Yahoo! wasn't bought by either MS or Google. It would be best if Yahoo! remained as Yahoo!!
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#9.7 Posted by shhac on 05 May 2008 - 12:18
- (ispamforfood said @ #1)I prefer yahoo as my homepage, over google. There's nothing on google's page that makes me want to spend a lot of time there.... I like that theres actual stuff to DO other than search, on yahoo's homepage.
What is there on the yahoo homepages that you can't do on the google homepages? I can read the articles from the RSS feed from this website or even play Sudoku on my google homepage if I like.
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(2 replies)
#10 Posted by boho on 04 May 2008 - 07:41
- Microsoft (Steve Ballmer) will watch the shares tank, and then may-be make another offer. If you have the cash - even Dollars (at the moment), it's a buyers market! Microsoft will want to divest themselves of their cash, and buy something - for the same reason people over the world are buying commodities. Google "fiat currency"
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#10.1 Posted by Scutley on 04 May 2008 - 19:04
- (boho said @ #10)Microsoft (Steve Ballmer) will watch the shares tank, and then may-be make another offer. If you have the cash - even Dollars (at the moment), it's a buyers market! Microsoft will want to divest themselves of their cash, and buy something - for the same reason people over the world are buying commodities. Google "fiat currency"
^That is what I'm think kind of like he s saying hey you don't want the deal look a what your stock will do.
Getting Yahoo would be good for Microsoft those people who are trying to spin it stop trying to spin it. Microsoft not buying Yahoo is going to hurt Yahoo I have a feeling that their stock will plummet Monday. How stupid is Yahoo. -
#10.2 Posted by Magallanes on 04 May 2008 - 22:41
- (Scutley said @ #10.1).
Getting Yahoo would be good for Microsoft those people who are trying to spin it stop trying to spin it. Microsoft not buying Yahoo is going to hurt Yahoo I have a feeling that their stock will plummet Monday.
..... and so Ballmer can buy Yahoo for half of the price suggested.
Suck to be a Yahoo's executive.
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(3 replies)
#11 Posted by +Dakkaroth on 04 May 2008 - 08:44
- Good. Microsoft could spend that money much better elsewhere.
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#11.1 Posted by Odom on 04 May 2008 - 15:28
- Like in a decent team to fix all of the bugs in their OS's and other apps
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#11.3 Posted by +Dakkaroth on 05 May 2008 - 20:36
- (Odom said @ #11.1)Like in a decent team to fix all of the bugs in their OS's and other apps
No, I mean as far as innovating goes. Microsoft constantly eats other companies to obtain whatever benefits they may offer. Instead of trying to nab Yahoo for their user base, why not put that money into something that could grab the attention of users? It's like they sit and wait until something hot comes out, and then try to either buy it or compete with it. Why not be the pioneer leading the way instead of just following everyone else? They certainly have the resources...
Don't get me wrong though, Microsoft does lead the way in several things already. I'm simply talking about their future plans though.
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#12 Posted by nunjabusiness on 04 May 2008 - 12:09
- Awesome. Hope Yahoo's shareholders enjoy the write-off (losses) on their taxes.
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#13 Posted by
neufuse on 04 May 2008 - 13:13
- I don't feel bad for the people that bought Yahoo stock when this story started at $30+ a share... you know it's going to sink into the $20's again now that this is over...
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(1 reply)
#16 Posted by +imis on 04 May 2008 - 15:27
- i am waiting for the result of this dirty game.
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(1 reply)
#17 Posted by MulletRobZ on 04 May 2008 - 16:17
- Amen to that. Besides, such a deal would have been bad for Microsoft anyway, as Microsoft's core business competencies are business computer software (Windows and Office) and gaming [XBox], NOT search and search-related advertising! If I were Ballmer, here's what I would have done:
- Sell off or kill Windows Live Services, especially their search!
- Sell off or kill the Zune. After all, that's not going anywhere (they still don't sell them outside of the USA after being on the market for two years).
- Return the focus of Microsoft to making a decent OS that would actually make people more willing to replace XP with!
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#17.1 Posted by bbfc_uk on 05 May 2008 - 12:29
- (MulletRobZ said @ #17)Amen to that. Besides, such a deal would have been bad for Microsoft anyway, as Microsoft's core business competencies are business computer software (Windows and Office) and gaming [XBox], NOT search and search-related advertising! If I were Ballmer, here's what I would have done:
- Sell off or kill Windows Live Services, especially their search!
- Sell off or kill the Zune. After all, that's not going anywhere (they still don't sell them outside of the USA after being on the market for two years).
- Return the focus of Microsoft to making a decent OS that would actually make people more willing to replace XP with!
Very good points.
I would either have Windows Live or MSN, not both and stop researching and bringing out new 'search' technologies that are totally pointless whilst Google is still around.
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(1 reply)
#18 Posted by Davo on 04 May 2008 - 19:28
- This should have been a done deal ages ago. Why anyone on Yahoo's side would think that they could suck more money out of an interested buyer is beyond me.
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#18.1 Posted by Schmoe on 05 May 2008 - 02:26
- No kidding... I wonder how many thousands of shareholder lawsuits get filed on Monday. I'm sorry Mr. Yang, Yahoo might be an Internet pioneer, but that doesn't say anything about your present ability to compete. The reality is that Microsoft could compete quite well if it spent $40B on internal R&D. The Live services have been such a flop because they haven't spent the time and effort comparable with their competitors. If Microsoft spends billions on their marketing and R&D, they will be a powerhouse (first off, they need a better brand than "Live").
I'm wondering if MSFT will buy them up for pennies on the dollar. I hope I'm wrong, I like Yahoo, but they are no longer the behemoth they once were. News Corp was in the same position with DirecTV. News Corp made an offer for DirecTV -- DirecTV chose Echostar. The merger fell through due to government intervention. News Corp made another offer for DirecTV (this one considerably lower than the first) and it went through. The only people who got hosed were the original shareholders (GM) since they could have accepted the original News Corp deal and made a fortune. Likewise, if Yahoo has a few more bad quarters, $33/share will have seemed like the Promised Land (not to mention their staff might not see the 1.5 billion that Microsoft had earmarked for retention bonuses).
Just think about that a minute... 1.5 billion for retention. Split 10,000 ways that works out to 150,000/ea. Mind you I'm sure some employees would see millions and others would see tens of thousands. I can't see how any Yahoo employees would be happy about this, especially considering they just had a round of 1500 layoffs.
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(2 replies)
#19 Posted by WhoTheF on 04 May 2008 - 19:49
- One thing is for sure. Yahoo's stock will go way down and Google's will raise way too much.
Now is the chance for Google to make its move towards Yahoo! -
#19.1 Posted by Magallanes on 04 May 2008 - 22:43
- Google can't move over Yahoo, after all (currently) Sequoia Capital (the de facto internet owner) is owner of a big parte of Google and a part of Yahoo.
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#20 Posted by koppit on 05 May 2008 - 04:43
- I'm glad Yahoo didn't give in. The last thing we need is Microsoft to have any more influence.
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(1 reply)
#21 Posted by jonboy0706 on 05 May 2008 - 14:38
- Last check the stock was at 23.80 down -16.99%. I'm guessing the stockholders weren't very happy with the outcome...
Stupid Yahoo. "...the bid was highly undervalued" Now that bid is a $10/share or 43% premium.
I guess MS can buy all available shares and end up saving in the end. Although, I hear that they're not interested in persuing this anymore.
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#22 Posted by C_Guy on 05 May 2008 - 15:19
- Neither company "needs" the other. Let each just focus on their core competencies.
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#23 Posted by bbfc_uk on 05 May 2008 - 16:29
- Microsoft exit hits Yahoo! shares...
http://news.bbc.co.uk/1/hi/business/7383700.stm
The article sums it all up - Mr Yang, you have a lot of explaining to do!
Microsoft without Yahoo!
http://news.bbc.co.uk/1/hi/business/7382665.stm
Last edited by bbfc_uk on 05 May 2008 - 16:42
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(1 reply)
#24 Posted by bbfc_uk on 05 May 2008 - 16:40
- What now for Yahoo?
Oh dear, poor Yahoo.
If you are a Yahoo shareholder, then brace yourself to lose quite a hefty chunk of your investment when US stock markets open on Monday. If you work for Yahoo and have stock options, you will be smarting as well.
And if you work for Yahoo's legal team, you may want to get ready for a deluge of lawsuits from enraged shareholders, who have seen a 70% boost to their investment evaporate. There are not many companies in the world who can both afford to buy Yahoo and possibly get the approval of competition watchdogs to do so.
Yahoo's top managers, however, will try to fight back, striking a series of alliances - including with Google, especially on advertising - to find new revenue streams.
And what about Microsoft?
Microsoft dearly wants to catch up with Google, and fast.
Mr Ballmer has now told staff that this is still its ambition.
Together with Yahoo this could have been achieved faster, he says, but he also believes that the world's richest technology company can do it alone - albeit at a somewhat slower pace.
Some of Microsoft's shareholders, though, will breathe a sigh of relief. Not everybody believed that "Microhoo" would have been a success.
Without the albatross Yahoo around its neck, Microsoft's share price should soar.
Source: http://news.bbc.co.uk/1/hi/business/7382630.stm -
#24.1 Posted by brent3000 on 06 May 2008 - 10:24
- well your not wrong at all...
http://finance.yahoo.com/q/bc?s=YHOO&t=5d
watgch the stock fall like $5... started to recover abit but its back to bumpy roads for yahoo...
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(3 replies)
#25 Posted by Billy Gun on 05 May 2008 - 20:05
- I'm not an executive so... I can ask a stupid question:
Woldn't be better insted of buying Yahoo, to use let's say 10-20 billions in Live? Or to make a hole new serch engine, with a new name.. just like zune or xbox? -
#25.1 Posted by +Dakkaroth on 05 May 2008 - 20:38
- (Billy Gun said @ #1)I'm not an executive so... I can ask a stupid question:
I believe even if you were an executive, asking a "stupid question" would be nothing out of the ordinary. -
#25.2 Posted by bbfc_uk on 05 May 2008 - 21:06
- (Billy Gun said @ #25)I'm not an executive so... I can ask a stupid question:
Woldn't be better insted of buying Yahoo, to use let's say 10-20 billions in Live? Or to make a hole new serch engine, with a new name.. just like zune or xbox?
They could do that, but that will take time. Buying Yahoo! was mostly about the market share gain and the combined technologies, allowing them to better compete with Google. Microsoft will now have to catch-up on their own, although they will probably buy a few start-ups that develop new technologies and integrate them into Live Search. Though i'm sure I read somewhere, maybe liveside.net that they are working on a new search engine and it may not be released inder the 'Live' brand! -
#25.3 Posted by lbmouse on 06 May 2008 - 17:33
- (Billy Gun said @ #1)Woldn't be better insted of buying Yahoo, to use let's say 10-20 billions in Live?
Throwing money down a rat hole doesn't make the rat hole any nicer. There is no guarantee that if MS spends more money on Live that it would make a difference. Look at the Vista debacle. Throwing more money at it isn't fixing anything. MS needs to find a way to get back to where it was in the early to mid 90's. They used to innovate rather than imitate and they were actually consumer friendly.
"Despite our best efforts, including raising our bid by roughly $5 billion, Yahoo has not moved toward accepting our offer. 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."