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Microsoft bids $44.6 billion for Yahoo

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Re: Microsoft bids $44.6 billion for Yahoo

#41
post #6

"We have dedicated considerable time and resources to an analysis of a potential transaction and are confident that the combination will receive all necessary regulatory approvals." Uh, really?

If the biggest advertising entity on the web (Google) can buy one of the other biggest advertising entities (Doubleclick), I'm pretty sure one of the also-rans can buy another also-ran.

Re: Microsoft bids $44.6 billion for Yahoo

#42

crap... given MS's history with standards, I should switch from yui's css framework to another one if the bid goes through

Think they will move everything to MS servers and re-write in .net?! heh

Not if they actually care about ROI. They got no benefit other than PR when they moved Hotmail to windows.

Re: Microsoft bids $44.6 billion for Yahoo

#44
post #33

How could an offer, that is 62% higher then the price at the stockmarket be refused?

Stock prices are weird. The current value is where half the people think the price is too low and half the people think the price is too high. Of course everyone who still has Yahoo stock think that the price is too low--because everyone who thinks the price is too high has already sold their shares.

So everyone who still holds any given stock thinks that the market price is too low.

Re: Microsoft bids $44.6 billion for Yahoo

#45

Some seemingly minor issues make me wonder how bad a situation Yahoo is in. Google has integrated their messenger into chat well enough that you can search through chats, grouped separately, as well as send messages of either kind to people you have contacted through chat or email. This makes a whole lot of sense, and I would think is relatively easy to accomplish. However, Yahoo's messenger is a bloated spam attract…

You don't have to read much of the business literature to discover that mergers and acquisitions, especially at this scale, rarely produce the expected synergies. All in all, I think this is good news for Google.

Re: Microsoft bids $44.6 billion for Yahoo

#46

I doubt that Yahoo's board and shareholders will accept the deal. It would be a good way for Microsoft to spend some of it's extra cash, though without getting in to regulatory trouble.

People buy stock to make money, and a 62% premium is good money. I doubt shareholders would reject the deal unless they think Yahoo is worth more than that. I doubt they would reject it because of some sort of amorphous anti-Microsoft sentiment.

Re: Microsoft bids $44.6 billion for Yahoo

#48

It's easy to cheer on Google, as Google as they systematically takes on established vertical markets (to sell advertising) and do fairly well in some of them. Why not root for the underdog, Yahoo + MSFT?

I can't be certain but I think you're being sarcastic :P

The reason is because Google WAS the underdog. Yahoo and Microsoft were the established giants. After 5 years or so the situation has almost reversed, though, with Google making (and buying) the killer apps and the other two players stuck in a game of follow the leader.

In 2007, Microsoft's net income was: $14 Billion. Yahoo's net income was: $660 Million. Google's net income was: $3 Billion.

Re: Microsoft bids $44.6 billion for Yahoo

#49
post #2

The market is reacting very positively: Yahoo is up almost 60% in pre-market trading, at a market cap of $40B (up from $26B at yesterday's close). Microsoft is down 4% however.

The stock market continues to baffle me. Microsoft is offering $31 per share of Yahoo. YHOO is now trading at nearly $31, up from $19 at the close yesterday. Why would anyone pay $31 for a share of Yahoo right now? There are two possible outcomes: 1) the deal goes through, and you get your $31 back either in Microsoft stock or cash. No net gain. 2) The deal doesn't go through and YHOO drops back to around $19, losing…

This always happens with buyout offers, the buyee's stock price shoots up close to the amount of the buyout offer, but never reaches it. It generally stops a couple dollars short of the buyout price. At this moment, Yahoo is trading at $28.25, still low enough to make a sure-thing couple of bucks per share. It's a gamble though. If the deal falls through, or gets blocked by the government, the buyee's stock price drops back down to where it was before the offer .

Re: Microsoft bids $44.6 billion for Yahoo

#50

Earlier quoted context omitted.

Think they will move everything to MS servers and re-write in .net?! heh

Not if they actually care about ROI. They got no benefit other than PR when they moved Hotmail to windows.

On the other hand, Hotmail being run on Windows shows that MS believes the server editions of Windows to be stable enough for their own use, implying that it should be stable enough for whatever you might need to do, too. Keeping customers from switching to *nix is of immense value to them.
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