Yahoo latest news - Microsoft out, Google in - MYBF

James · #1 (**permalink**) 11-04-08, 06:25 PM

Microsoft are not the flavour of the day with Yahoo at all. It looks like Yahoo are possibly going to make ties with their biggest rival, Google.

After Microsoft's recent offer to buy Yahoo it is felt that they are keen to remain somewhat independent and announced that it would begin a test to deliver Google ads alongside Yahoo search results.

Microsoft have issued a statement:

Quote:

Microsoft Corp today issued the following statement from Brad Smith, Microsoft’s General Counsel, related to an announcement today by Yahoo! Inc.

“Any definitive agreement between Yahoo! and Google would consolidate over 90% of the search advertising market in Google’s hands. This would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo! We will assess closely all of our options. Our proposal remains the only alternative put forward that offers Yahoo! shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company, and enhances choice for content creators, advertisers, and consumers.”

So will Microhoo be a thing of the past now that Yahoogle makes a somewhat surprising entrance?

full story here
http://www.informationweek.com/blog/..._latest_l.html

James.

James · #2 (**permalink**) 17-04-08, 03:20 PM

Reuters (and Wall street Journal) are already reporting that initial Google Ad testing with Yahoo has been successful and it doesn't stop the possibility of Microsoft and Yahoo merging.

Quote:

Yahoo Inc is looking to turn over Web search advertising to Google Inc following a successful test using Google's service to deliver ads alongside its Web search results, the Wall Street Journal reported on Wednesday, citing unnamed sources.

Spokesmen for Google and Yahoo declined to comment.

The possible partnership with Google would be part of an a bid by Yahoo to forge a three-way deal where Yahoo would merge with Time Warner Inc AOL in return for Time Warner taking a stake in Yahoo, sources had told Reuters last week.

The move by Yahoo to outsource Web search advertising to market leader Google would allow Yahoo to focus on its online brand advertising business where it has a stronger position. Yahoo and Google announced the limited ad test a week ago.

Google and Yahoo are considering how to ward off antitrust challenges, the Journal said, citing sources familiar with the discussions. A potential deal could involve limiting the ties to specific groups of search queries or regions, it said.

Yahoo is seeking alternatives to a Microsoft Corp's unsolicited $31 per share takeover offer. It has said that that offer undervalues Yahoo and has signaled that it wants a higher offer before considering a Microsoft deal.

The Journal also reported a tie-up with Google would not necessarily derail an eventual deal to merge with Microsoft. Yahoo could simply pull out of the Google deal if Microsoft bought it, sources told the paper.

James.

James · #3 (**permalink**) 15-05-08, 02:33 PM

Just to keep you up to speed on this, Microsoft walked away from the aquisition of Yahoo

Quote:

Last ditch talks about a friendly merger between Microsoft and Yahoo unraveled when Yahoo wouldn’t budge from an asking price of $37, $4 a share more than Microsoft was willing to pay. Given the options, Ballmer could have paid up only to lose his shareholders and employees, launched a proxy war that would have been a disaster or walk away, an outcome that just a few days ago was unthinkable.

Ballmer chose door No. 3 and walked. The Yahoo deal was set up to define his career and I gotta hand it to him for choosing the do-nothing option. Is this deal over? Perhaps. If Yahoo falls to $20 a share (think about those fellows who doubled down) perhaps $31 a share will look wonderful. But for now that concern is Yahoo CEO Jerry Yang’s. Yang will have to answer to shareholders now.

Steve Ballmer sent Yahoo CEO a nice little letter stating,..

Quote:

In our conversations this week, we conveyed our willingness to raise our offer to $33.00 per share, reflecting again our belief in this collective opportunity. This increase would have added approximately another $5 billion of value to your shareholders, compared to the current value of our initial offer. It also would have reflected a premium of over 70 percent compared to the price at which your stock closed on January 31. Yet it has proven insufficient, as your final position insisted on Microsoft paying yet another $5 billion or more, or at least another $4 per share above our $33.00 offer.

Since February Yahoo stock has jumped from $18/share to more like $28/share - it appears to still be holding... but for how long?

James.

James · #4 (**permalink**) 15-05-08, 09:19 PM

Well maybe for a little longer...

http://news.bbc.co.uk/1/hi/business/7403006.stm

Quote:

The billionaire investor Carl Icahn has launched a battle to topple the Yahoo board and replace its 10 members with his own slate of directors.

Mr Icahn said in a letter to Yahoo that it was clear the board had acted "irrationally" in its dealings with Microsoft, which tried to buy it.

Shareholders will now get the choice between the two boards at the annual meeting on 3 July.

Mr Icahn wants to buy an additional $2.5bn worth of Yahoo shares.

The manoeuvre follows much anger and criticism over Yahoo's decision, led by co-founder and chief executive Jerry Yang, to turn down Microsoft's $47.5bn (£24.4bn) offer to buy the company.

Yahoo had wanted Microsoft to increase its bid of $33 a share to $37 a share.

Mr Icahn said it was "unconscionable" that the firm had not put the decision to shareholders, saying the offer was a 72% premium to the value of Yahoo shares before the bid was tabled.

"I and many of your shareholders strongly believe that a combination between Yahoo and Microsoft would form a dynamic company and more importantly would be a force strong enough to compete with Google on the Internet," Mr Icahn said.

Microsoft has already said that, contrary to rumours of it possibly making another move later in the year, talks with Yahoo are over.

It would definately be interesting to see the board of Yahoo get turned over...then Microsoft walk away. I can't see the board of Yahoo being removed unless there remains an offer on the table from Microsoft. Watch this space......

James.