Microsoft offers to purchase Yahoo! for $44.6 bill
 

http://news.yahoo.com/s/nm/20080201/...microsoft_dc_6

Microsoft Corp (MSFT.O) said on Friday it has offered to buy Yahoo Inc (YHOO.O), the popular Web portal, for $44.6 billion in cash and stock, seeking to join forces against Google Inc (GOOG.O) in what would be the biggest Internet deal since the Time Warner-AOL merger.

Microsoft offered to buy Yahoo for $31 per share, a 62 percent premium over Yahoo's closing stock price on Nasdaq Thursday. Yahoo shares jumped to $30.75 in premarket trading.

Yahoo said the online advertising market is growing rapidly and expected to reach nearly $80 billion by 2010 from over $40 billion in 2007. Yahoo added it is "increasingly dominated by one player," referring to Web search leader Google.

"We have great respect for Yahoo, and together we can offer an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market," Microsoft Chief Executive Steve Ballmer said in a statement.

Yahoo was not immediately available for comment.

The company has been losing market share to Google and warned earlier this week that it faced "headwinds" in 2008, forecasting revenue below Wall Street estimates.

On Thursday, Yahoo disclosed that nonexecutive Chairman Terry Semel was leaving the board, ending its formal ties with the former chief executive, who is credited with reviving the company and then losing touch.

Semel, replaced as CEO last June, had faced heavy criticism for failing to move faster to meet both rival Google's challenge in Web search and advertising and, more recently, the rise of social networking sites such as MySpace and Facebook.

U.S. stock futures jumped on the Microsoft news, which offset a disappointing earnings report from Google late Thursday.

Paul Mendelsohn, chief investment strategist at Windham Financial Services, said a deal made sense.

"Yahoo is having a really tough time competing against Google. Whether it's a good price, I can't see anybody else who is going to outbid Microsoft," Mendelsohn said.

Microsoft said it had identified four areas that would generate at least $1 billion in annual synergies for the combined entity.

Tim Smalls, head of U.S. stock trading at brokerage firm Execution LLC, was less enthusiastic about the benefits of a tie-up.

"Shocking! To me, the premium seems exorbitant, for what is a dwindling business. I personally don't see how the synergies of Microsoft-Yahoo is going to take on Google," Smalls said.

Dear Mr. Gates,

Your offer blows man!! Like totally sucks! We're going to Google!

Love,
Yahoo!

http://news.yahoo.com/s/nm/20080205/...lliances_dc_10

Screw hat. Google was whining and pissing and moaning that if Microsponge bought up Yahoo, it would break anti-trust laws (which is the word I was actually looking for instead of Monopoly). Now they're no freaking better. No competition, less jobs. Yeah! I"m for a Pre-Teddy Roosevelt attitude for the economy. One big fat corporation paying off the governement so they can buy up everything and become a monopoly. Google, go google yourself.

Dude, you're terrible with puns. If Google googled Google, they'd just be redirected to their own website.

Cure yourself, TheCure.

HA!

But yeah, that Google pun was indeed pretty terrible.

I'm tempted to comment on that "Pre-Teddy Roosevelt attitude for the economy" but I'm too scared of getting this thread locked for conducting socio-economical conversations in here.

So I'll just say Drtooth is a leftist.

Not so much that as I want to actually be able to find work, and not have to wrestle all the lay offs for one. Mergers only help the economy when one of the companies being merges is going under. A merger brings only short term growth in most cases, and even still, no matter how good it gets, people get laid off. less people buying crap, less money being thrown around by companies. And less competition is only a short term good thing. Competition is what makes the economy work. There's a difference between Capitalism, and runaway corporate control. I still have nightmares of one mega corporation that can charge whatever they want, and refuses to employ anybody.