
Microsoft said in its statement that it was offering Yahoo a deal which is even worth more than the original $33 per share for the whole company. In addition to offering to buy search business of Yahoo, Microsoft was ready to acquire a 16% stake in Yahoo at $35 a share, according to a source familiar with the company's offer. This time, though, it appeared it was Yahoo which wanted Microsoft to get the whole company, an option that the company refused to revisit, according to a separate source. Microsoft and Yahoo executives met at Mineta San Jose International Airport, at which time Yahoo says it was told unequivocally that Microsoft would not resume its buyout bid, though it was interested in a deal for Yahoo's search business.
Yahoo decided its search business was very strategic, even though later it agreed to allow Google to serve up a good chunk of the company's search related advertising. "With respect to an acquisition of Yahoo's search business alone that Microsoft had proposed, Yahoo's board of directors has determined, after careful evaluation, that such a transaction would not be consistent with the company's view of the converging search and display marketplaces, would leave the company without an independent search business that it views as critical to its strategic future, and would not be in the best interests of Yahoo stockholders," Yahoo said in its statement saying talks with Microsoft has come to an end.
4 Comments:
At 3:01 AM,
firestarter said…
what the hell is yahoo doing. Microsoft offered you 1 BILLION and you walked away from that. your shareholder are going to kill you.
At 3:02 AM,
JCPayne said…
How would Yahoo sell their search??? Hello!!! it is based at Search.yahoo.com
At 3:03 AM,
DKT27 said…
Its a childish thing that Yahoo has done ,so far, by rejecting microsoft's offer and now you can see if they had accepted it they would earn twice more a year than what they are earning now.
At 3:06 AM,
fdunn3 said…
It is just funny (not being a shareholder in Yahoo) watch as the announcents are being made and what it is simultaeusly to the value of Yahoo, MS, and Google's stock values. When Yahoo finally disapproved the sale of it's search business in favor of outsourcing it to Google it is apparent that Yahoo's stock value is going down on heavy trading. At the same time Microsoft and Google's stock values rose. That was of Friday afternoon's stock exchange close. This morning I anticipate seeing the volume of Yahoo stock being traded peaking while shareholders try to squeeze what little value is left out of Yahoo. That being said, a heavily sold/traded stock value decreases as the panic stricken holders try to get what they can over the price of Yahoo's stock before the original Microsoft offer (`$19/share). With Friday's closing offering prices for Yahoo were at $22.75 and with the high volume today after Yahoo's announcements I anticipate that the volume will peak again this morning and close at less than when MS first made it's offer. Yahoo has very little leverage in the search business anymore and It's shareholder know they are going to take a loss if they don't get rid of the stock quickly. Foreshadowing any miracles I see Yahoo losing even more ground and stock prices tanking at about $10/share before the year is out.
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