By Matthew Magain

Microsoft Offers $42 Billion For Yahoo!

By Matthew Magain

Big news to close the week — that Microsoft has initiated a $42 billion takeover bid for Yahoo!.

In a conference call Friday, Microsoft Chief Executive Steve Ballmer indicated he won’t take no for an answer after Yahoo rebuffed takeover overtures a year ago. “This is a decision we have — and I have — thought long and hard about,’ Ballmer said. ‘We are confident it’s the right path for Microsoft and Yahoo.”

There’s no guarantee that Yahoo! will accept the offer, or even if they do that the deal will gain approval from anti-trust regulators in the United States and Europe. But given that the offer for $31 per share is a 62 percent premium on the current market value, and that Yahoo!’s share price has been steady declining, I would be very surprised if they didn’t accept.

It would be interesting if it goes ahead to see what the combined forces could achieve. I also wonder whether the diverse portfolio of Yahoo! (I’m thinking Flickr,, Upcoming and the like), much of which are powered by open source technologies, would retain the same branding and strategy under the Microsoft umbrella. Not to mention the difficulties that one would face in merging two very, very different cultures.

Interesting times. Watch out Google!

  • George

    Wow that’s huge. Microsoft + Yahoo vs Google + Youtube

    The showdown of the century

  • viveknarula

    If this bid accepted by the Yahoo then i think it may be the setback for the Open source technologies that Yahoo is using, such as PHP. I don’t think Microsoft will insist with this if the bid is accepted. They will defiantly replace PHP with their technologies such as ASP.NET.

    Guys what do you think ?

    will it takes PHP one step backward ?

  • Well, the whole purpose was to start getting a foothold on the advertising market. With Google’s recent eying of DoubleClick, the worry is that Google will become too dominant in the advertising market.

    That said, I’m not sure the “developer” side of yahoo is going to change right away. Not only that, but what’s in it for Microsoft to rebuild an entire site in another language? You’ve got something up already, people that can maintain the site, what’s the point of wasting resources like that?

    I really hope that this merger can match up to google. Everyone is hoping on the google train, causing a lot of quality search results to sometimes be taken over by aggressive seo tactics.

  • It would be interesting if it goes ahead to see what the combined forces could achieve

    I think effectively losing one of the three major search and PPC ad providers could be very bad news for the Web. That said, IMO this is probably preferable to Google buying Yahoo – that would give them a virtual monopoly if allowed to do so.

  • ArrGee

    42 BILLION! Is there any chance that just a paltry million could slip into my pocket please? It won’t make any difference, honest.

    I understand that the www is global, but still, can you really justify that vast amount? I’m sure the infrastructure of Yahoo has taken some doing by a bunch of very very clever and talented people, but will they see a glimpse of that kind of cash? I really hope so.

    Can Microshaft make a big difference? I think at that price they will leave it as a cash-cow (but I could be horribly wrong). (Most likely, I’m horribly wrong).

  • Some insights from a well-known Yahoo employee:


    Always any company or person has some self hidden agenda or self interest. Remember and Take note. And Pay heed. Any too good a deal or offer or tempting offer is just”Plainly not necessarily too good to be true”. Remember the story of The King offered Gold. Anything He touches turns to gold, even his daugther turned to gold. Here comes MICROSOFT so called to the rescue again. Haven’t they learned their lessons by now, MICROSOFT still want’s to hold a monopoly on the market. SEE WHAT IT DID TO THE APPLE COMPANY, NETSCAPE, NOVELL COMPANIES, TO OTHER COMPANIES.
    MICROSOFT with all its good intentions is a Pandora’s box. It is killing the creative minds of our country and society by imposing it to swallow only it’s dictates, Remember Borland and Java, it flooded the market with its own version of Java Script that is incompatible with other softwares and products. Microsoft lacks its own originality and has always been a copy cat ever since its birth. “It’s Killing Me Softly” so as to speak. It’s worst as an Alien Invasion – Attack from Mars. Creative geniuses are frustrated because large companies steal great ideas and the large companies profits while still the majority or minority genuises are very poor and destitute. THINK ABOUT THAT. Look at the products now all made in China.????????

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