Yahoo Rejects Microsoft $44.6 Billion Offer
Yahoo (NASDAQ: YHOO) has just rejected the $44.6 Billion offer made by Microsoft (NASDAQ: MSFT). Yahoo wants at least $40 a share.
From Bloomberg’s website it seems like Google (NASDAQ: GOOG) is proposing a partnership with Yahoo.
“Google CEO Eric Schmidt contacted Yang to suggest a partnership, the New York Times reported Feb. 4. A partnership with Mountain View, California-based Google may allow Yahoo to outsource its search service, shedding the costs of running its own search engine and sharing ad revenue with its larger rival.”
This is getting to be more interesting. I can’t pretty much say what would be Yahoo’s play this time. Could it be that Yahoo is testing if they can get more from Microsoft? If you think about it, who needs who? On the search front, I definitely believe that Microsoft needs Yahoo more than the other way around.
Now with regards to the move by Google CEO to suggest a partnership, it might cause worry since it will basically give rise to a search engine monopoly. That would definitely be a big issue.
Let’s get a feel of what others think about this issue. If you were Yahoo, what would you do and why? There’s no right or wrong answer here folks. Just go ahead and share your opinion.
Let’s start with my opinion on this. If I were a stockholder of Yahoo, I would definitely want to earn as much money immediately from this deal. If you look at Yahoo’s stock prices over the last 5 years, the highest so far was last Jan 6, 2006 which was 43.31 then it was primarily downhill from then.
A Microsoft-Yahoo acquisition would definitely be a good idea to give balance to the continually rising marketshare of Google. I don’t think Microsoft or Yahoo can do it by themselves separately but together, I definitely think there is a bigger chance.
How about you? What do you think?
[via bloomberg ]
Tags: , Google, Microsoft, microsoft offer, YahooRelated Stories
POSTED IN: General, Google, Live.com / MSN, Yahoo
1 opinion for Yahoo Rejects Microsoft $44.6 Billion Offer
B. Daley
Feb 11, 2008 at 10:23 am
Honestly it’s kind of a tough call for me. If I were Yahoo! maybe waiting for Microsoft to offer $40 per share may be the best idea for the market, however partnering with Google would seriously rack in some $$$ for Google’s shareholders and maybe yahoo’s shareholders as well. So it’s a tough call even though I still can’t afford Google at this point. If Yahoo and Google were to partner, that would also give Google’s new Android platform an increased chance in becoming a successful mobile software application, therefore pushing Google’s growth margins even farther. But in the end I think it almost boils down to what do people think is either best for the economy or their pockets. The increased competition of the “Micrahoo” alliance would bring even more competition to the mobile software market therefore stabilizing price to an extent even though Google still would own more of the market share with Microsoft and Yahoo combined. It’s just too hard to say, but either way Google will profit or will receive some benefit from the buyout, the partnership, or even if Yahoo! says screw everyone and chooses to fight their slow impending doom out. *sigh* If I only had the money to invest in Google :o(
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