Microsoft is now making move in acquiring Yahoo! share, in an attempt to prevails the internet search market over the predominant leader, the big G. The insanely huge $44.6 billion bid was proposed by Microsoft in seeing their better survival.
According to its letter to Yahoo, Microsoft attempted to enter talks about a deal a year ago, but was rebuffed because Yahoo was confident about the “potential upside” presented by the reorganisation and operational activities that were being put in place at the time.
“To me, the premium seems exorbitant, for what is a dwindling business,” said Tim Smalls from the brokerage firm Execution LLC. “I personally don’t see how the synergies of Microsoft-Yahoo is going to take on Google.” Other analysts were more enthusiastic about the offer.
“It is a fantastic offer. It is game on,” said Colin Gillis from Canaccord Adams. “This consolidates the marketplace down to Google versus Microsoft. These two companies will be going head to head.”
“A year has gone by, and the competitive situation has not improved,” Microsoft’s letter said.
With Yahoo! total return in 2007 drops 32% and with Yahoo chief executive, Jerry Yang himself announced recently that he intended to lay off 1,000 staff as part of a restructuring plan, the bid seems to be on the right time and place. However, with the aggressive overture by Microsoft which required Yahoo! execs to respond in 2 days or Microsoft will go public, made a turning point to Yahoo! to seek all other options but Microsoft.
I still hope the the acquisition will go on even the chance seems to be slim (according to the latest update). I’m wondering what changes would be on the net.
References:
- Two days to response or else
- Microsoft wants to purchase Yahoo!
- Microsoft wants to buy Yahoo!
Technorati Tags: microsoft overture, Yahoo!, search engine, Microsoft acquisition
Feb 8, 2008 at 08:54:59
bagus la.. nanti banyak lagi fungsi microsoft integrate dengan yahoo :)
Feb 9, 2008 at 09:29:33
xsaba gk nak tgk apa yg akan berlaku..heh
Feb 12, 2008 at 12:52:13
they hv rejected the offer, what next? anyway, microsoft has a way of making a mess of things but still making money from it. that’s pure genius.
Feb 14, 2008 at 21:57:59
it will be bloddy marketing war!! he.. he..
sampeyan yang punya blog ini orang Indonesia ya? keren lo blognya.
Feb 20, 2008 at 13:18:38
I don’t think 44 billion is a very good bid for yahoo! Damn! Microsoft is cheap!
Feb 25, 2008 at 22:54:18
Finally Microsoft wants to buy yahoo. At least somebody is trying to compete with google. According to the fact that my search rankings are much better on msn, I hope that after buying yahoo this will have an influence on yahoo search results as well.