Microsoft CEO says company got "lucky" when Yahoo deal fell apart

In the first half of 2008, Microsoft offered $44.6 billion to purchase Yahoo. At one point, Microsoft raised the buyout offer by another $5 billion However, in the end Yahoo rejected the offer from Microsoft, saying that it undervalued the company. The deal fell apart just a few months before the stock market crashed and the Great Recession began. Now Yahoo's stock is worth about half what it was in 2008.

In hindsight, Microsoft's CEO Steve Ballmer now admits that having the deal with Yahoo collapse was a good thing in the end. Business Insider reports that Ballmer, speaking at the Web 2.0 conference on Tuesday, said, "Ask any CEO who might have bought something before the market crashed....Hallelujah. Putting everything else aside, the market fell apart....Sometimes, you're lucky." Microsoft did strike a deal with Yahoo in 2009 to provide search results for Yahoo's web site powered by Microsoft's Bing technology.

Ballmer's remarks came on the same day that Yahoo revealed its quarterly financial results for the three months that ended on September 30. Yahoo's net revenue was $1.07 billion for the quarter, a five percent drop from the same period a year ago. However those results actually beat expectations from financial analysts and as a result Yahoo's stock price went up in after hours trading. The company, which fired its CEO Carol Bartz in September, is rumored to be considering a number of options to sell Yahoo, or at least parts of it. Yahoo is also rumored to be considering the possibility of taking the company private.

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10 Comments

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spike21 said,
He's lucky,I'm lucky,every thing micro$oft buys that doesn't make them a billion dollars they destroy.

Hi YouTuber

Personally I think that Microsoft should just keep investing in their own technology and improving their own services - at the end of the day I can't see anything positive that Yahoo could bring that can't be achieved through a little hard work and innovation.

Yahoo sure hasn't helped themselves with their new, improved, faster (?) mail, that's for sure!!

Man, does it suck!!

I got lucky and got converted back to the classic version when I tried signing in using an unrecognized browser (Midori) in Linux.

cork1958 said,
Yahoo sure hasn't helped themselves with their new, improved, faster (?) mail, that's for sure!!

Man, does it suck!!

I got lucky and got converted back to the classic version when I tried signing in using an unrecognized browser (Midori) in Linux.

As a Yahoo Mail user, I agree with you. Whenever they introduce a new Yahoo Mail, the Photo Attachments feature gets removed, and I don't know why.

You know what? I want Yahoo Mail to be purchased by Microsoft so that I can use the Hotmail UI on it. And I want Flickr to be purchased by Facebook (this forces Facebook to support all Flickr features, which is cool)

cork1958 said,
Yahoo sure hasn't helped themselves with their new, improved, faster (?) mail, that's for sure!!

Man, does it suck!!

I got lucky and got converted back to the classic version when I tried signing in using an unrecognized browser (Midori) in Linux.


I made the switch to Gmail few years ago when i realized that Yahoo is just a bunch of crap...

cork1958 said,
Yahoo sure hasn't helped themselves with their new, improved, faster (?) mail, that's for sure!!

Man, does it suck!!

I got lucky and got converted back to the classic version when I tried signing in using an unrecognized browser (Midori) in Linux.

Yeah, I use a link that goes stright to my classic inbox; so I don't have to press the "upgrade" button when signing in.

I miss Yahoo from 2008. Thinking of moving to livemail.

Pretty much it's dead. I was thinking because of the bots that over run the chat and you can't make user created rooms anymore, since what happened several years ago. But I feel Yahoo is doomed just like myspace