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Sun, Nov 08, 2009 - 12:02 AM EST  —  AAPL: 194.34 (+0.3099, +0.16%)  |  NASDAQ: 2112.44 (+7.12, +0.34%)

Yahoo to reject Microsoft’s $44.6 billion unsolicited takeover bid
Saturday, February 09, 2008 - 01:56 PM EST

"Yahoo! Inc., the world's second most popular Internet search engine, plans to reject Microsoft Corp.'s $44.6 billion unsolicited takeover offer, the Wall Street Journal reported, citing a person familiar with the situation," Ari Levy reports for Bloomberg.

Levy reports, "The board decided the price 'massively undervalues' the Sunnyvale, California-based company, and Yahoo may face risks because regulators could oppose the combination, the newspaper said today. On Feb. 1, Microsoft offered $31 a share in cash and stock for Yahoo, 62 percent more than the price before the bid."

"Chief Executive Officer Jerry Yang, who said this week that Yahoo is examining its options, may consider a partnership with bigger rival Google Inc. or ways to wrest a higher offer from Microsoft," Levy reports.

"Yahoo might seek help from rivals, soliciting other bids or seeking partnerships with Rupert Murdoch's News Corp. or Google to thwart Microsoft, according to analysts including Stanford Group Co.'s Clayton Moran," Levy reports.

"The New York Times reported Feb. 4 that Google CEO Eric Schmidt contacted Yang to suggest a partnership between their companies," Levy reports.

Full article here.

[Thanks to MacDailyNews Reader "Ampar" for the heads up.]


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Feb 09, 08 - 02:06 pm Comment from: BiZarRo BaLlmEr

GOOGLE!!!!!!!

*throws chair*

Feb 09, 08 - 02:13 pm Comment from: Denny

Everybody hates M$. Don't you just love it.

Feb 09, 08 - 02:15 pm Comment from: theloniousMac

How long before MDN starts using the phrase, "beleaguered Microsoft?"

Feb 09, 08 - 02:16 pm Comment from: clunker

<i>Yahoo may face risks because regulators could oppose the combination<i>

Um, you mean the same regulators who wouldn't do anything about MS's existing monopoly and blatant abuses?

This is just posturing by everyone involved. Ballmer will pay whatever it takes to land Yahoo. The more MS has to borrow, the better.

Feb 09, 08 - 02:20 pm Comment from: ChrissyOne

Aw hell, I wanted to see MS waste all that money. It would have sped up the downward spiral nicely.

Feb 09, 08 - 02:22 pm Comment from: AshNazg

ChrissyOne -- exactly.

$44.6 billion is a large amount of money -- even for Microsoft. Considering nearly everything Microsoft gets involved with fails, the Yahoo takeover would essentially be the same as Microsoft flushing $44.6 billion dollars down the toilet. I was looking forward to it.

Oh well...

Feb 09, 08 - 02:24 pm Comment from: ChrissyOne

"The New York Times reported Feb. 4 that Google CEO Eric Schmidt contacted Yang to suggest a partnership between their companies," Levy reports."

I think this is a great idea - there should be an anti-MS cartel, involving Yahoo, Google, Apple, Sony, Sun, etc...

Divide and conquer, unite and rule!

Feb 09, 08 - 02:25 pm Comment from: ChrissyOne

@ AshNazg

There's still hope, maybe they'll bid it up a bit more. Do I hear 50?

Feb 09, 08 - 02:29 pm Comment from: Not Bill

Go beleaguered Microsoft go!

Feb 09, 08 - 02:30 pm Comment from: marcos

How would a Google/Yahoo partnership help Apple?

Feb 09, 08 - 02:57 pm Comment from: Awesome Anthony.

Hey can this change the value of money etc?
when the $44 B is a waste of time and is wasted.
Perhaps we could have a Better economy.

PS: Can Apple please invest in NZ with a store.
smile Thanks and Even a cell phone Network would be cool.

OK>

Feb 09, 08 - 02:57 pm Comment from: JAYGEE

I'm all for Microsoft going bankrupt, but not at the expense of destroying another company that doesn't deserve it.

I would like Yahoo to remain an independent company.

Feb 09, 08 - 03:02 pm Comment from: Zune Tang®

Yahoo's stubbornness will be their downfall. You had your chance, Yahoo, and now you will pay dearly for your obstinacy. I wouldn't want to be Yahoo or Google right now as MSN will come back bigger and stronger. Prepare yourselves for the flood of magnificent customer-focused innovation soon to be unleashed from Redmond under the 'Live' banner. Those of us who proudly stand by Microsoft will be richly rewarded. I can't wait.

These Yahoo dorks remind me of the MAC sheep who think they can get along without Microsoft. How wrong they are. Those who spurn the coveted Microsoft brand will be in a world of hurt, and in short order. You Yahoo fans and MAC lemmings really think a bunch of also-rans can unite and put a dent in mighty Microsoft? Prepare to be steamrolled by the Redmond machine. You have been warned.

Your potential. Our passion.™

Feb 09, 08 - 03:11 pm Comment from: awesome

um yeah .
Any single girls want to be my girlfriend, Would be cool.

Feb 09, 08 - 03:28 pm Comment from: DavidEGo

Now that we're friends with Yahoo, the old Arabian proverb comes to mind, "The enemy of mine enemy is my friend."

Feb 09, 08 - 03:31 pm Comment from: AshNazg

@ ZuneTang

Not bad, not bad at all. Thanks or the smirk. wink

I'm shakin' in my boots....

Feb 09, 08 - 03:43 pm Comment from: Ross

@ marcos

Yahoo Messenger in iChat?

Feb 09, 08 - 03:48 pm Comment from: RL

I too hope that this takeover occurs, but that Microsoft is forced to significantly increase their bid in order to make it happen. That would definitely hasten Microsoft's eventual (and much deserved) downfall.

Your frustration. Our fault.™

Feb 09, 08 - 03:56 pm Comment from: Educate Me

Exactly what does Yahoo have that makes it worth more than the Sonic about 5 blocks from here? I see the value on Google, Apple, even Microsoft. I don't Yahoo, don't like yahoos, do not wish to be a yahoo or have any in close proximity.

Like ChrissyOne (The One & Only), I was kind of hoping the Micro$oftopoly was going to throw away a truckload of Microsoft-Tax money on this wasted venture that is an answer to the question nobody is asking. They deserve each other.

Feb 09, 08 - 04:20 pm Comment from: kenh

RE: "the old Arabian proverb comes to mind, "The enemy of mine enemy is my friend."

Makes sense if you have a 7th century medieval mindset like they do.

You just can't keep track of who is friends with whom, and for how long.

Hope Yahoo thinks it through and realizes that your "friend" of today could be your enemy of tomorrow.

Feb 09, 08 - 04:48 pm Comment from: Neven

@Educate Me

"Exactly what does Yahoo have that makes it worth more than the Sonic about 5 blocks from here?"

1. The second-largest email provider
2. The second-largest search engine
3. One of the largest IM networks
4. The most popular photo website

Whether you like those or not, they're worth $$.

Feb 09, 08 - 05:46 pm Comment from: treestman

I'd rather see Yahoo hook up with Microsoft than Google. Let's not be so quick to build the next big monopoly:

What’s Worse Than Microhoo? Yahoogle!

Feb 09, 08 - 05:57 pm Comment from: hs

I dont think ZT is actually a person... just an automated service. Mix it up dude, be Motorola for a day or something... or Dell - that would be fun

Feb 09, 08 - 06:06 pm Comment from: Heh

Is the world ready for GooHoo?

Feb 09, 08 - 06:09 pm Comment from: Ampar

"Mix it up dude, be Motorola for a day or something... or Dell - that would be fun"


Holy shit! If you get to choose, be Gisele Bündchen for a day. I'd have to fake a sick day for that.

Feb 09, 08 - 06:48 pm Comment from: Brain Fart

I ♥ ZuneTang. He's great

Feb 09, 08 - 06:54 pm Comment from: spyinthesky

This is Bill Gates last throw of the dice before he goes off into the sunset to help spend some of the money he has conned from we mere mortals on gratuitous self promotion, sorry I mean good causes. He leaves either having done the deal that saves MS's bacon in the new World that is rapidly making MS's few money cows increasingly redundant or (and more likely) he leaves having set up that 'saving deal' opportunity which Stevie Balmer and co then go on to completely bugger up of course. Meanwhile everyone thinks what a wonderful man Billy boy is and the urban myths develop into biblical proportions. He started that company with a dodgy deal and he is now leaving it with the ultimate one.

Feb 09, 08 - 08:16 pm Comment from: one guy from Finland

Yahoo = Who?

Feb 09, 08 - 09:50 pm Comment from: Arnold Ziffel

MS: "Innovation Through Assimilation."™

Feb 09, 08 - 09:54 pm Comment from: James

That's why we used to call them 'The Borg' . . .

Feb 09, 08 - 10:37 pm Comment from: Jim

Zune Tang is so far of the track that at first I thought he was being funny, but the more I read from him the more worried I become. I mean he is the kind of guy that talks to himself and lives in a hole in the ground. He worries me, and I suggest he check himself in for a little mental checkup before he cracks.

Feb 09, 08 - 10:46 pm Comment from: AppleRocks

FSCK MICROSOFT!! THEY ARE CRAPOLA!!

I'm a life long Mac user and thought I try to fix my friends Windows PC.

I managed to clean off all the viruses, spyware etc., locked the box down so nothing can get in. But everything is so HALF-ASSED BACKWARDS.

Like who the FSCK has to "shut down" to "restart" the machine?

It's crap, Windows is TOTAL CRAP.

Absolute and UTTER CRAP!!!

Smart Mac Users WILL NOT USE ANY MICROSOFT SOFTWARE WHAT SO EVER!

Use NeoOffice which is is very nice on the Mac and it's free and compatible with Office and OpenOffice.

Feb 09, 08 - 11:46 pm Comment from: shen

this is like the Taoist story about the old farmer and the horse. it could be bad news, but it could be good news. this might only mean an even more expensive hostile take over....

Feb 09, 08 - 11:47 pm Comment from: Olmecmystic

Poon Tang sounds like Darth Vader complaining about the rebels.

Of course Yahoo doesn't want M$; who does?

Peace.
Olmecmystic wink

Feb 10, 08 - 12:13 am Comment from: Jerry

Look they would not let the #1 search company do anything that's for sure. I don't see any type of yahoo and google deal getting done not to mention google needs to worry about their own problems at the moment and look for new streams of revenue beyond search which is something they have not done yet. Let MSFT have yahoo it's not worth the price it's trading at, let alone 44 billion. It's a done deal so just get on with it no one period can turn a bid down like this with bagholder shareholders ready to bank out. Let them have another cash drainer.

Feb 10, 08 - 12:46 am Comment from: iLuvMyMacs

<< "Zune Tang is so far of the track that at first I thought he was being funny..." >>

@Jim
Ah... Jim-- Stick with your first thought.

Feb 10, 08 - 04:10 am Comment from: Petey

I think Microsoft cannot afford to up the bid for Yahoo.

You look at Microsofts products performance over the years and in daily increasing trend of companies looking for ways out of dealing with Microsoft and you have a situation of a monolithic organisation that has alot of problems.


Consider the evidence;

1. Products not selling in the volumes Microsoft needs to sell the m in

2. Businesses wanting to break away from the stranglehold of using their propriety software

3. Lack of innovation, creativity and sensible business decisions

4. Microsoft's reliance on 'buying the competition' to innovate and destroy choice

5. Steve Balmer (says it all really)

6. Microsoft's core markets and products being sidelined for alternatives

7. Lack of speed to market with products compared to smaller and more efficient businesses.


Add all these up and you get a company that is too big, has to buy the competition to stay in markets, re-acts too slowly to competing companies, cannot innovate and above all is seeing shrinking sales due to businesses sick of being screwed.

Let's face it... If Microsoft buy Yahoo then both companies will go down.

Yahoo's best move is a partnership with Google not a buyout from Microsoft.

Feb 10, 08 - 04:47 am Comment from: almux

Times when entreprises where "pround" to be bought by M$ is over!
Monopoly of crap is going under!
wink

Feb 10, 08 - 06:30 am Comment from: Ampar

"Times when entreprises where 'pround' to be bought by M$ is over!"

Not exactly.

"Microsoft has bought Caligari, a developer of 3D modeling software, in a move that could help enrich the graphics experience in Microsoft's Virtual Earth mapping system."

"'Now we will have more resources to rely on, larger market to consider and I hope more fun doing that,' [Roman Ormandy, founder and CEO of Caligari] wrote.

"In December, Microsoft bought Multimap, which also became a wholly owned subsidiary and works with the Virtual Earth and Search groups. Multimap develops online mapping services. At the time of that acquisition, Microsoft said the buy would help it expand its online services offerings to consumers and businesses."

(source: washingtonpost.com)

Feb 10, 08 - 08:10 am Comment from: pete1967

Regardless what happens I will only use google for search anyway.

So let Microsoft waste its I'll-gotten gains from years of ripping off businesses.

Feb 10, 08 - 08:12 am Comment from: Jeff

How is this company worh 44 Billion? At this rate it would take 66 years for payback, and I thought Yahoo was in decline.

Yahoo! Reports Fourth Quarter and Full Year 2007 Financial Results
Full Year Revenues - $6,969 Million
Full Year Operating Income - $695 Million

Feb 10, 08 - 09:20 am Comment from: smackdown

Poon Tang sounds like Darth Vader complaining about the rebels.

I thought it sounded more like a trash-talk segment from a 1980's pro wrestling TV show.

As for Yahoo wanting MS, anything's for sale if the offering price is right. If I were Yahoo's shareholders and board, I'd hold out for at least $100 billion in CASH, no worthless MSFT stock options or crap like that.

Ballmer will stop at nothing to "take on" Google. Why not capitalize on it?

Feb 10, 08 - 09:23 am Comment from: john

I'll take Google over Microsoft any day. Microsoft would just ruin yahoo completely. I applaud Yahoo for rejecting Microsoft. There are many who don't use Yahoo as a search engine, but do use it for there email. Microsoft would probably kill the email especially if it had any compatibility with Macs. Make it IE7 only compatible, things like that. You would probably have to buy something Microsoft that wasn't Mac compatible in order to use it.

NO THANKS MICROSOFT!!!

Feb 10, 08 - 11:16 am Comment from: iDon't

If I had 44 billion I could start my own company. Why buy one?

Feb 10, 08 - 11:50 am Comment from: Macaday

Mmmm.... seems as though money ISN'T everything!

Sorry Microsoft, you've had it.

Feb 10, 08 - 11:54 am Comment from: Macaday

http://blogs.computerworld.com/safari_is_about_to_get_crazy_fast

Give Safari webkit a try - it really is as fast as he says. I don't have any issues with it... it seems to be just as rock stable as Safari 3.0.4..

Go Apple!

Feb 10, 08 - 03:35 pm Comment from: Goople

Microsoft is obviously desperate, I would sell them the paid search business for 25 billion then outsource to Google.

Microsoft gets their Google weapon. Yahoo stays independent with enough R&D;cash to find their way again.

Feb 10, 08 - 04:29 pm Comment from: The Rev.

What ever, still don't use either of them.

Feb 10, 08 - 11:43 pm Comment from: uh oh

Yahoo stock will tank 10+ dollars Monday morning.

Feb 11, 08 - 07:52 am Comment from: HotinPlaya

They are right on the money today

http://www.geekculture.com/joyoftech/index.html

Feb 11, 08 - 08:45 am Comment from: erk

Chrissyone hit the nail on the head

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