Microsoft offers to buy Yahoo for 44.6 billion dollars

[Larwee]

Microsoft has made an unsolicited offer of $44,600,000,000.00 to buy Yahoo.

It is a bid of $31 a share, which is 62 percent more than the closing price of Yahoo yesterday.

The main reason is to challenge Google which is growing at a faster rate than Microsoft and dominates search and online advertising. Some are calling it a desperate move.

Yahoo said the bid was unsolicited and that its board

will evaluate this proposal carefully and promptly, in the context of Yahoo's strategic plans, and pursue the best course of action to maximize long-term value for shareholders.

There are a lot more details. Below are some articles with those details:

Bloomberg.com: Worldwide

Microsoft bids $44.6 billion for Yahoo | CNET News.com

Microsoft bids $44.6B for Yahoo - CNN.com

Microsoft offers $44.6 bln for Yahoo; targets 'dominant player' - MarketWatch

[Larwee]

Many analysts are starting to wonder about this and for some rather obvious reasons.

Neither Yahoo or Microsoft has been able to catch Google in search. Even with their share of the market combined now they still trail Google. Many are wondering if they will do much better as a team.

The same is true with advertising. Both of them have been trying to come up with something like AdSense and neither has it mastered yet.

A benefit is that Microsoft and Yahoo would no longer need to compete against each other and could devote their full attention to Google, but previously each of them was still more interested in doing battle with Google than with each other.

Here is a link to a very interesting and detailed article that examines all of this and many of the good as well as bad points of this potential deal Would a Microsoft-Yahoo deal out Google Google?

[Larwee]

Yahoo says it needs time to consider the Microsoft offer and that it could take a while. Yahoo might want to remain independent.

Following the Microsoft offer, there are now reports that others are interested in buying Yahoo. Among those being mentioned are General Electric, Comcast and Viacom. Clearly none of those are a natural fit, however they are being reported as being interested.

Yahoo has said it will evaluate all options.

There are more details and this article has them Yahoo says it needs time to mull Microsoft offer | Reuters

[kbldshmn]

Sounds like the early Yahoo stock owners who held onto their shares will get a second bite of the (Internet) apple. They were up. Then down. Now they're up again.

[Larwee]

This is really starting to become very interesting now because it is being reported that Yahoo might be considering an alliance with Google in order not be be bought by Microsoft. There are reports that the chief executives of both companies have been talking about this after the Microsoft offer became known.

Yahoo is reported to be saying that the Microsoft offer undervalues Yahoo.

Ther are a lot more details about this possible alliance between Yahoo and Google. This article has them Yahoo may consider Google alliance, source says | Technology | Reuters

[purplebear]

I didn't have time to hear the whole story but they were saying something about what you were saying on the radio this morning how Google was offering to help Yahoo fend off Microsoft. I wanna keep things the way they are with the three of em.

[Julia]

I haven't had time to follow the story as closely as I'd like either, but wow, a Google-Yahoo alliance would further cement Google's world domination.

I'd rather see Yahoo join with Microsoft and see if the two could develop a product that could realistically compete with Adsense.

[Larwee]

Nothing has yet been made public as to what type of an alliance there could be between Yahoo and Google. Actually they had been talking about some type of an arrangement several months ago before this Microsoft proposal was made. But nothing happened. There are many different possibilities for an alliance.

The idea of some type of an alliance between Google and Yahoo isn't at all unsual. They did have one in the past that lasted for a few years in which Google supplied search for Yahoo. A number of analysts are saying that if this were to be done again it could save Yahoo a tremendous amount of money. None of them seem to have any good idea as to everything that could be involved in an alliance but feel it would be much more involved than the previous arrangement between Yahoo and Google.

[purplebear]

Will be interesting to say the least to see what happens

[Larwee]

It is being reported that the Yahoo board plans to reject the Microsoft 44.6 billion dollar offer to buy Yahoo.

According to the report, Yahoo board members say the unsolicited offer undervalues Yahoo.

The Microsoft offer is $31 a share. It is reported that Yahoo won't consider anything less than $40 a share. Such a price would cost Microsoft twelve billion dollars more.

There are still reports that Yahoo is considering some type of partnership with Google.

These two articles have more details:

Bloomberg.com: Worldwide

Report: Yahoo Board to Reject Microsoft