Microhoo?
It’s not the first time the west coast software giant has gone after Yahoo, but it’s very likely to be the last. The offer on the table this time around, a modest $44.6 billion. Microsoft’s offer represents a premium of approximately 65% over yesterday’s closing price and that should be enough to get the job done. Despite having hundreds of millions of users globally, an 8% revenue increase in 2007 and currently being ranked #1 in traffic by Alexa.com, Yahoo has had a remarkably bumpy ride of late. The search engine turned web service provider scraped up about $660 million in profits in 2007, down roughly 13% from 2006. Yahoo is also expected to layoff hundreds of employees in the coming months in an effort to increase profitability. Analysts and basically anyone with a keyboard seem to agree that the timing for this acquisition couldn’t be better, and the deal is expected to go through unless a surprise third-party pops up to intervene with a competitive bid. Yahoo’s first official response to the bid:
Yahoo! Inc. (Nasdaq:YHOO), a leading global Internet company, today said that it has received an unsolicited proposal from Microsoft to acquire the Company. The Company said that its Board of Directors will evaluate this proposal carefully and promptly in the context of Yahoo!’s strategic plans and pursue the best course of action to maximize long-term value for shareholders.
MS spending some of their cash on a struggling company that was once a giant. They really should have done this about 10 years ago.
Good move for both though, can;t imagine anyone but google getting into a bidding war here, doubt that though.
“…unless a surprise third-party pops up to intervene…”
And so the board of directors gather to decide whether to enable or disable the pop-up blocker…
I prefer “Yahoosoft.”
although if this does actually comes to pass, I think the most likely outcome is that Yahoo gets absorbed into MS’s Web division.
Randy, I agree that there will be no Yahoo if this goes through.
Too bad for Yahoo. Once MS buys it it might become MSNahoo and lose all its Yahoo flair and be covered in a boring MS blue tone that lacks any innovation.
Youv got it all wrong…
It will be:
MSN Yahoo! Live
It’s going to be YahMic! not Microhoo.
I like micyahoo
I also would like to see maybey yahoo buying microsoft