Microsoft has made an "unsolicited offer" to buy Yahoo! for $ 44 billion. Amidst news that Yahoo! has plans to lay off as many as 1000 employees, this might be a face saver for Jerry Yang -- if Microsoft Corp (MSFT) sweetens the deal with saying a "No" to Layoffs. From the potent wording of the Yahoo! Release -- I think they are about to say "YES" to Microhoo! as the offer seems to be Hostile. (My old friends on conditions of anonymity confirm that the Microsoft offer is indeed Hostile.)
Yahoo! Board of Directors to Evaluate Unsolicited Proposal From Microsoft
SUNNYVALE, Calif., Feb 01, 2008 (BUSINESS WIRE) -- Yahoo! Inc. (Nasdaq:YHOO), a leading global Internet company, today said that it has received an unsolicited proposal from Microsoft to acquire the Company. The Company said that its Board of Directors 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.
Ofcourse if the layoffs happen it would be case of employees paying for the mistakes of management strategy followed by Terry Semel -- something that would *never* be acknowledged. There is no way that Yahoo! alone can win back Search versus Google. At best Yahoo! will keep losing market share bit by bit. Social Networking, the other megatrend on Internet has also been missed by Yahoo! (except acquisition of Flickr and Delicious).
To me it makes sense. This is the only hope for Microsoft - Yahoo! duo to ever compete with Google. Microsoft can bundle Yahoo! services with Windows including Search, Messaging, Photosharing etc. This could potentially become very powerful and my gut feel is that this time it may happen. However, if the offer is Hostile -- then I expect mid to senior level Yahoo! employees to quit.
Per NYT:
Search Growth is expected to slow down 2008 onwards and this consolidation will help both Yahoo! and Microsoft -- as Google will tend to go for the kill -- and grab as much share from 2 weak competitors to make more money.The offer of $31 a share represents a 62 percent premium over Yahoo’s closing stock price of $19.18 on Thursday. It would be Microsoft’s largest acquisition ever....Microsoft said it believes the Yahoo transaction could receive the necessary regulatory approvals in time to close by the second half of this year.
» Know More Media Review: Layoffs, Takeovers, Super Bowl and a Day to Wear Red from Know More Media
Another week chock full of hot news buzzing across the network. From the Yahoo layoffs and possible takeover; to “heartache leave” and National Wear Red day, Know More Media authors had plenty to say. For starters, today is National... [Read More]
Tracked on: February 1, 2008 8:03 PM | Permalink to Trackback