Microsoft says "no" to Yahoo buy-out, only wants search deal
By Andrew Lyle, 19 November 2008 - 22:39 39 comments
Microsoft told Yahoo today that it is not interested in a takeover of the company, and only interested in making a search engine deal with the company. The decision came from Steve Ballmer, the CEO of Microsoft.
The announcement made Yahoo's stocks plummet to $9.14 a share, from $11.57. Steve Ballmer told Yahoo that it was only interested in a search engine only deal, and would not be interested in a takeover of the company. The original offering of $33 a share to purchase Yahoo was turned down by Jerry Yang, back in early May.
The renegotiation's of Microsoft to acquire Yahoo came about after the announcement that Jerry Yang, the former CEO of Yahoo stepped down. "We are done with all acquisition discussions with Yahoo" Steve Ballmer told the press during a question and answer session at Microsoft's annual shareholders meeting.
However, after talks about not acquiring Yahoo, Microsoft offered to have a search engine only deal, where Microsoft would remove the Yahoo search engine, and replace it with its own, Live Search.
Comments (39)
thealexweb - 20 November 2008 - 07:51
I get it on Yahoo's website is would say powered by live, just like it says on AOLs but by Google, technically this take Yahoo out of the search market.
Andrew Lyle - 20 November 2008 - 08:49
Steve Ballmer stated that the world doesn't need "3 googles".
So if the deal is finalized, which I am sure will be, Yahoo will move one step closer to being purchased by Microsoft, at a much much lower price tag then $9/share. I would think they are waiting till Yahoo shares even out a little, probably around $3-5 a share, and acquire Yahoo.
theyarecomingforyou - 20 November 2008 - 15:05
This is all part of Microsoft's new campaign to appear a more friendly company, as trashing a company's share price in order to force them to use your own search engine is typically well received by the general public.
Honestly though, Microsoft was offering $33 per share and now won't deal at $12-15? This just shows it's still the company that used to bully OEMs and abuse it's monopoly position. Ballmer has been a disaster for the company.
GP007 - 20 November 2008 - 15:12
Are you serious? The ones trashing yahoos share price is yahoo itself, Yang didn't want to deal months ago and got bit in the butt from his stupidity.
MS isn't forcing yahoo to do anything, the fact is that times have changes in those months that have past, Live and it's services are shaping up to be quite good, MS doesn't need all those extra and similar services, so why even pay for them now? All they every cared about was the search part of the company and still only do.
The general public doesn't even follow this mess, a mess that's been made by Yahoo itself. MS offered over and over, only to get turned down time and time again, so now they don't want to pay for the whole company when only one part is worth a dime. That's just smart business.
Ballmer hasn't hurt MS at all, aside from spoiling news early on new products.
theyarecomingforyou - 20 November 2008 - 16:15
Microsoft was willing to pay a high price for Yahoo and was actively pursuing such an arrangement. Now Microsoft is happy to watch Yahoo shares slide in order to force their Live search engine upon them. We have seen this aggressive showmanship from Ballmer many times before, trashing everyone from Apple to Google in the media. It's sad that there is so much innovation from within the company but it is led by an imbecile that stands in such stark contrast to the company's public image.
thealexweb - 20 November 2008 - 20:13
So if the deal is finalized, which I am sure will be, Yahoo will move one step closer to being purchased by Microsoft, at a much much lower price tag then $9/share. I would think they are waiting till Yahoo shares even out a little, probably around $3-5 a share, and acquire Yahoo.
With the money saved from buying yahoo at a fraction of the price they could go after AOL and FaceBook as well.
+spenser.d - 20 November 2008 - 23:12
They aren't forcing Live search on anyone. That's they're offer as it is now. Yahoo was worth something when it was still good for $33/share. It's not worth anything anymore. Maybe if yahoo wouldn't have been run by a complete idiot who made a complete ass of the company while negotiating with MS, there'd still be a deal on the table.
Kosh - 20 November 2008 - 08:30
I like the Microhoo! logo.
PROGAME - 20 November 2008 - 10:07
how about Yahoocrosoft? :P
Scirwode - 20 November 2008 - 14:17
Sounds like something from Tomb Raider :P .
Scirwode
carl0ski - 21 November 2008 - 05:38
I was leaning toward rebranding some Yahoo and MS Products
Ya!soft Pipes!
Ya!soft Vista!
Ya!Soft Games!
Sacha - 20 November 2008 - 08:33
LOL @ original offer of $33. Yahoo is now crying with shares worth $9.
ambiance - 20 November 2008 - 08:42
Just don't screw up Delicious or Flickr and I'm fine.
Magallanes - 20 November 2008 - 13:25
amen brother! (specially flickr).
Ci7 - 20 November 2008 - 08:45
who much could they sink more !
5$ a share
badblood - 20 November 2008 - 08:55
I would guess now maybe the time to purchase a few shares in Yahoo, specially if Microsoft cuts a deal with them with regards search. Share price would then go up (presumably) and people who have invested could indeed make a little cash.
Raa - 20 November 2008 - 22:38
And if a deal doesn't happen and Yahoo crashes? You've lots a lot of money!
xpablo - 20 November 2008 - 08:56
Microsoft doesn't need Yahoo, in fact it seems nobody wants Yahoo.
TRC - 20 November 2008 - 10:20
Windows Live search hasn't exactly been a huge success for them. They can't even pay people to use it, even though they have been trying to.
Magallanes - 20 November 2008 - 13:27
And, Yahoo is quite popular in some countries, afaik yahoo kick ass in Japan over Google.
Instead live search is good for nothing.