Microsoft Bids $45 Billion For Yahoo February 03, 2008
Read more Gizmodo UK , Laptops , Online , PC , Software , Technology
Microsoft has been looking for a way to fight Google in the online advertising game for some time, and now, it’s revealed its masterplan: buy Yahoo.
The company has tendered a massive $45 billion offer to Yahoo to hook up in what would be the technology industry’s biggest ever takeover. The offer of $31 per share is more than 60% higher than Yahoo’s share value and considering the company’s dodgy performance in recent years, it could go all the way.
In an open letter, Microsoft CEO, Steve Ballmer, said:
"In late 2006 and early 2007, we jointly explored a broad range of ways in which our two companies might work together. While a commercial partnership may have made sense at one time, Microsoft believes that the only alternative now is the combination of Microsoft and Yahoo! that we are proposing.
In February 2007, I received a letter from your Chairman indicating the view of the Yahoo! Board that "now is not the right time from the perspective of our shareholders to enter into discussions regarding an acquisition transaction."
According to that letter, the principal reason for this view was the Yahoo! Board's confidence in the "potential upside" if management successfully executed on a reformulated strategy based on certain operational initiatives, such as Project Panama, and a significant organizational realignment. A year has gone by, and the competitive situation has not improved.
Today, the market is increasingly dominated by one player who is consolidating its dominance through acquisition. Together, Microsoft and Yahoo! can offer a credible alternative for consumers, advertisers, and publishers.”
Yahoo are ‘evaluating’ the offer but there are early clues that hint it may get the green light. For instance, Yahoo’s former CEO, Terry Semel, was responsible for rebuffing Microsoft’s advances last year. Now Yahoo chairman, Semel resigned hours before news of the new Microsoft offer broke. Coincidence?-Martin Lynch
Editor and Contributor | Martin Lynch
Contributor | Tamlin Magee
