Microsoft and Yahoo working on $20 billion deal

CrimsonRedMk on 30 November 2008 - 05:27 · 32 comments & 7034 views

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Microsoft is once again in talks with Yahoo to acquire its search business for $20 billion according to reports from The Times.

The deal comes after two previously failed Microsoft attempts to take over all of Yahoo. Also, Microsoft would support a Yahoo management team with $5 billion. This would be used to fill in several empty positions on Yahoo's team, such as the CEO position Jerry Yang left recently.

The deal would bolster Microsoft's search presence, which has been lacking. Microsoft has also been rumored to be rebranding "Live Search" into "Kumo". After news of this meeting, it is rumored that Kumo will be a mixture of Yahoo and Live Search into one. The deal comes as a saviour to Yahoo also - it is estimated that Yahoo will benefit $2 billion per year under the new deal.

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(1 reply) #1 thealexweb on 30 Nov 2008 - 13:21

This wasn't added seven hours ago, I submitted to the news desk but I guess I wasn't first in the cue, :-(

#1.1 creamhackered on 30 Nov 2008 - 14:16

Yes unfortunately we queue our news. Sorry

(3 replies) #2 Airlink on 30 Nov 2008 - 14:00

"Jerry Yang left recently."
Oh, so THAT'S what Microsoft was waiting for.

#2.1 thenonhacker on 30 Nov 2008 - 16:53

Airlink said,

"Jerry Yang left recently."
Oh, so THAT'S what Microsoft was waiting for.

Partly true. The other half of this truth is that Carl Icahn made this happen. Remember him, the activist who strongly suggested that Yang should sell to Microsoft?

#2.2 R1pper on 01 Dec 2008 - 11:23

this is a huge mistake, wth microsoft see in yahoo, i have no idea. that's a big waste of money.

how MS could benefit from yahoo?

#2.3 Magallanes on 01 Dec 2008 - 12:20

thenonhacker said,

Airlink said,

"Jerry Yang left recently."
Oh, so THAT'S what Microsoft was waiting for.

Partly true. The other half of this truth is that Carl Icahn made this happen. Remember him, the activist who strongly suggested that Yang should sell to Microsoft?

Icahn did oppose to Yang and was a pro fusion with Microsoft until Yahoo gave two sit in the yahoo's board.

(3 replies) #3 EverReddy on 30 Nov 2008 - 16:37

This rumor sounds a little too farfetched. While they could be having talks, the price tag and terms of this deal seem pretty iffy. Yahoo as a whole company is worth less than $20B on the market and Microsoft's previous search deal was only worth half of this one. Why would MS be looking at something this expensive, especially in these economic conditions?

#3.1 ricknl on 30 Nov 2008 - 16:46

You're right. The numbers don't make sense.

#3.2 plastikaa on 30 Nov 2008 - 17:11

If Yahoo share owners spread enough rumours who knows how much they could Rise

#3.3 markjensen on 01 Dec 2008 - 12:01

EverReddy said,

Why would MS be looking at something this expensive, especially in these economic conditions?

Especially if you consider the additional costs of converting Yahoo's BSD equipment to Windows.

(1 reply) #4 digitalsoft on 30 Nov 2008 - 16:52

Very interesting! Kumo sounds great as a brand name, just hope it can live up the standards of google.

#4.1 toadeater on 30 Nov 2008 - 23:22

Kumo sounds like a disease of the nether regions.

#5 Red Dragon on 30 Nov 2008 - 17:06

Microsoft attempts to buy market presence again.

#6 darkmanx21 on 30 Nov 2008 - 17:15

I hope this does not happen. Yahoo is not worth that much.

(5 replies) #7 ncc50446 on 30 Nov 2008 - 18:25

I hate companies that have to rely on buying other companies to make themselves known/better. Use that money instead to make your product better than the competetors and guess what? You might do better! All the big companies seem to do it. Just seems like lazy to me. Oh well, I don't use either service anyways. Use to use Yahoo!, but Google always seemed to give me better results or I would have stayed with Yahoo!.
Rest well Yahoo!

#7.1 Glendi on 30 Nov 2008 - 18:55

Google also has bought a lot...

I do not hate Microsoft for buying Yahoo, considering it's gonna be better than their Live service. The point is, Microsoft is probably gonna do a better job with Yahoo than Yahoo did to itself.

#7.2 thealexweb on 30 Nov 2008 - 20:40

Glendi said,

Google's bought YouTube, Picasa, Android, AOL (5%), etc.

#7.3 ncc50446 on 30 Nov 2008 - 22:31

I didn't know about Android or AOL...lol But I did know about Youtube. I might not agree with what the do, but I still do use them. Just like I do use Windows.

#7.4 +Frazell Thomas on 01 Dec 2008 - 01:57

Either you just want to jump on the nice hate MS bandwagon or you don't understand the real world...

You can't always innovate a solution better than a competitor or to do so would cost considerably more than buying the competitor...

What you are saying is equiv. to saying why buy any product at all? Why don't we all just build our own?

#7.5 Jebadiah on 01 Dec 2008 - 07:46

Frazell Thomas said,

To bolster your comment further: if we build our own product, they would say we copied it.

#8 brent3000 on 30 Nov 2008 - 19:19

Should be intresting to see how there stocks react to this news... i say $20 or so easy... Guess we all know why Icann was buying a **** load more shares now..

(1 reply) #9 hagjohn on 30 Nov 2008 - 19:59

What happens to the rest of Yahoo if MS buy's the search part?

#9.1 EverReddy on 30 Nov 2008 - 20:11

The rest of Yahoo would still be run by their current management like it right now. The only diff would be that the search is taken off their hands in exchange for a fixed cash revenue.

#10 DrOmango on 30 Nov 2008 - 20:16

for 20 billions, microsoft should invest that on other stuff, they can make a better search engine than yahoo.... if they can.

(1 reply) #11 thealexweb on 30 Nov 2008 - 21:42

After I thought about it a bit more 20 billion just for the search part is far to much, 25 billion yahoo as a whole would be a generous deal. I think Microsoft should be looking into AOL and FaceBook as well.

#11.1 GP007 on 30 Nov 2008 - 22:50

There's no official statement from MS or Yahoo about this yet right? So it seems just to be a rumor.

I don't see the need for MS to keep or even use many of Yahoos services that MS does right now anyways, the new Live Wave 3 stuff is very nice and very interesting.

That aside, Search is where Live is a little weak, though everytime I use it I find what i'm looking for, so no problems there.

Aside from search Yahoo has 2, maybe 3 other sites/services that are worth a dime, the rest just loses cash which is how they got into this whole mess in the first place.

(1 reply) #12 alan on 01 Dec 2008 - 00:08

what ever happens google will still be the top search. microsoft just want to be in the top 5. but everything microsoft buy dies. look what happened to multimap.

#12.1 ricknl on 01 Dec 2008 - 14:10

And look what happened to PowerPoint.

(1 reply) #13 Sevan on 01 Dec 2008 - 05:30

I saw it coming.. I just KNEW this was going to happen.

#13.1 ]SK[ on 01 Dec 2008 - 11:03

Your the man.

#14 +DrunkenMaster on 01 Dec 2008 - 06:43

There could be some truth to this. Its always just as easy to spin news on this (insider) to gain an advantage. Stock manipulation, taking down the competition, getting the shareholders on board. Or its someone speculating on the whole matter ... and might not even be right.

IMO whatever is the truth, I just hope all the Yahoo employees keep their jobs.

#15 Atlonite on 01 Dec 2008 - 14:36

hah this'll be the lol of the centry here in nz as up untill last yr ms were partnered with telecom/xtra known as xtramsn.co.nz well ms wated more services to be available but telecom said sod off we aren't going increase our server capacity just for your junk so ms once again run there own servers here in nz and guess who now partners with telecom/xtra yup you guessed it and its now known as yahoo.xtra.co.nz anyone for what the next name will be
maybe something like msn.yahoo.xtra.co.nz oh forgot to say this telecom/xtra are the main telco and isp here

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Microsoft and Yahoo working on $20 billion deal

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