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Microsoft offers to buy Yahoo for $45 billion

1 February 2008 7:39 by Matti "Siggy" Vähäkainu | 30 comments

Microsoft offers to buy Yahoo for $45 billion  Microsoft has announced today that they have made an offer to buy Yahoo. The long speculated acquisition now has a price tag on it, $44,6 billion, which is significantly more than the current market value of Yahoo. According to Microsoft the deal would improve the operational efficiency and increase value for advertisers, which would create a "more efficient" company.

The forty-five billion is approximately 20 billion more than the market value of Yahoo according to Nasdaq. The current value is $19,18 per share or around $25,6 billion for the whole company. If the deal becomes reality the share's value would be roughly $31.

Microsoft hopes to complete the deal during the second half of the year.

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  • Microsoft ends bid for Yahoo (4 May 2008)
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    Discuss this article!  There are more user comments available, read them here
    glasssd (Newbie) 1 February 2008 9:22 Send private message to this user   
    Just like MS, If you cant beat them, Buy them.
    7thsinger (AfterDawn Addict) 1 February 2008 9:49 Send private message to this user   
    Nothing like watching M$ flex their muscles...again.

    Couldn't really blame Yahoo! for taking the 45billion.


    EDIT: Typo. :)

    This message has been edited since posting. Last time this message was edited on 1 February 2008 10:30

    Globe08 (Inactive) 1 February 2008 10:18 Send private message to this user   
    45 billion not mill...craziness. yahoo would be stupid to not accept the money. it may not benefit us but they will be getting 2 times what their worth so its a win winfor yahoo. wonder if MS will incorporate it into live somehow ....maybe add a damn web browser sometime in this century.
    maryjayne (Junior Member) 1 February 2008 10:32 Send private message to this user   
    If this deal goes through, I wonder how long it will take before we see the first Microsoft fix for Yahoo! Search pop up in our Automatic Updates.
    varnull (Inactive) 1 February 2008 11:54 Send private message to this user   
    Ya-WHO??

    Do they have a website or something?



    Free open source software = made by end users who want an application to work.... Commercial "pay for" software = made by software developers who want paying... see where I'm going with this?

    This message has been edited since posting. Last time this message was edited on 1 February 2008 11:55

    silk42 (Senior Member) 1 February 2008 11:55 Send private message to this user   
    I read the full article (it's on page 2) and it mentioned that Microsoft's offer might lead other suitors to make offers for Yahoo. Other than possibly Google, who else would be interested in paying that much for Yahoo. I know there are other large companies out there, and Oracle always loves to go shopping, but who else would seriously consider this?
    dRD (I hate titles) 1 February 2008 12:26 Send private message to this user   
    Originally posted by silk42:
    I read the full article (it's on page 2) and it mentioned that Microsoft's offer might lead other suitors to make offers for Yahoo. Other than possibly Google, who else would be interested in paying that much for Yahoo. I know there are other large companies out there, and Oracle always loves to go shopping, but who else would seriously consider this?
    I doubt that Google even could make a bid for Yahoo, as the deal would be blocked by authorities in States, EU, etc as it would give simply too much power for Google in search (not that they don't have the muscle already :-).

    Interestingly enough, despite Google being very, very good in what they do, this might be good for consumers, as in all business fields the innovations happen much, much more often if there's real competition in the marketplace. And, looking at worldwide search figures, there currently isn't.
    goodswipe (Inactive) 1 February 2008 12:42 Send private message to this user   
    Opens FF and Google's Yahoo....ahhh...LOL.

    People still use that worthless search engine?

    "Bug? That's not a bug, that's a feature."
    silk42 (Senior Member) 1 February 2008 12:59 Send private message to this user   
    Quote:
    I doubt that Google even could make a bid for Yahoo, as the deal would be blocked by authorities in States, EU, etc as it would give simply too much power for Google in search (not that they don't have the muscle already :-).
    I don't think it would be blocked for creating a monopoly, because there are still several search sites available (Live.com, Ask.com, Search.com, AltaVista.com, Dogpile.com, etc...). Those are just a few that I know off the top of my head and I'm sure there are more. Simply because the vast majority of the population chooses to use Google, doesn't mean that it's doing anything illegal. It's simply a matter of the other search engines not keeping up.
    BludRayne (Junior Member) 1 February 2008 13:33 Send private message to this user   
    Guess I'll need to dump my Microsoft stock before this becomes final. Paying nearly double what Yahoo is worth? This is BS!
    aj123 (Member) 1 February 2008 16:11 Send private message to this user   
    Quote:
    Quote:
    I doubt that Google even could make a bid for Yahoo, as the deal would be blocked by authorities in States, EU, etc as it would give simply too much power for Google in search (not that they don't have the muscle already :-).
    I don't think it would be blocked for creating a monopoly, because there are still several search sites available (Live.com, Ask.com, Search.com, AltaVista.com, Dogpile.com, etc...). Those are just a few that I know off the top of my head and I'm sure there are more. Simply because the vast majority of the population chooses to use Google, doesn't mean that it's doing anything illegal. It's simply a matter of the other search engines not keeping up.
    Just keep this in mind. Google has about 66% of the search engine market and obviously leads all other companies. Yahoo and microsoft(#2 and 3, respectively) combine to make only 30% i believe. So, if google acquires yahoo, they would have atleast 82% of the market, which to me is quite alot. There's a link to my info somewhere on msn.
    dragnandy (Senior Member) 2 February 2008 0:17 Send private message to this user   
    with that extra 20 billion, Yahoo! should just make a whole new website, and advertise that thing like crazy; i believe 20 billion is more than enough.
    B33rdrnkr (Newbie) 2 February 2008 4:58 Send private message to this user   
    great, whatever OS MS comes up with next will be integrated with yahoo BS...
    jove (Newbie) 2 February 2008 12:06 Send private message to this user   
    nooooooooooooo yahoo, noooooooooooooooooooooooooooooooooooooooo
    varnull (Inactive) 2 February 2008 12:19 Send private message to this user   
    I love it.. one out of ideas and failing business buys another out of ideas failing business.. Gotta make sense..

    So will vista machines only take people to yahoo homepage when, not if this happens.. instead of that "force it down your throat" M$ forever to load page??

    hehehehe.. I have had a load of panic service calls because IE whatever crap version it is was giving a 404 server not found and the vista n00bs didn't know how to change homepage.. which I must say is really hard to do... deliberate attempt at M$ only lockin.. and I tested and found I could not access my website from vista, as others have reported..

    These 2 will vanish together, sunk the sea of failed proprietry technology, DRM and consumer lockin.



    Free open source software = made by end users who want an application to work.... Commercial "pay for" software = made by software developers who want paying... see where I'm going with this?
    Demise_2 (Newbie) 3 February 2008 2:27 Send private message to this user   
    i don't mind Microsoft buying Yahoo, as long as it is not Walmart buying yahoo.
    DXR88 (Senior Member) 3 February 2008 10:46 Send private message to this user   
    Why,How does this benifet MS. Wow, worse than my mother buy it just to have it, way to go MS.

    this transaction, should go in the books as the most usless transaction ever made.
    ZippyDSM (AfterDawn Addict) 3 February 2008 16:21 Send private message to this user   
    Originally posted by DXR88:
    Why,How does this benifet MS. Wow, worse than my mother buy it just to have it, way to go MS.

    this transaction, should go in the books as the most usless transaction ever made.
    MS is expanding their internet portfolio, Yahoo has A LOT of net shops(well the shops use their checkout systems or web suits), you'd be surprised at what all yahoo is into.
    DXR88 (Senior Member) 3 February 2008 16:50 Send private message to this user   
    but just the puchase of Yahoo does not entitle them to the third party shops under yahoo name. besides all yahoo is NOW is a bloated search engine. i remember when it was like text based search no pics just Unicode results.
    ZippyDSM (AfterDawn Addict) 3 February 2008 16:57 Send private message to this user   
    Originally posted by DXR88:
    but just the puchase of Yahoo does not entitle them to the third party shops under yahoo name. besides all yahoo is NOW is a bloated search engine. i remember when it was like text based search no pics just Unicode results.
    No no no you misunderstand me it gives them access to yahoos revenue and the areas yahoo has expanded into they are sheering up their internet portfolio while they can, because google is not stopping to take a breather.

    But this move is kinda like AOL buying netscpae or ICQ,its a seemingly empty maneuver that just expands them into thos fields more..
    DXR88 (Senior Member) 3 February 2008 17:02 Send private message to this user   
    I find your lack of faith Disturbing,ZippyDSM

    Thanks for the clarefiction ZippyDSM
    drach (Inactive) 4 February 2008 0:50 Send private message to this user   
    Quote:
    But this move is kinda like AOL buying netscpae or ICQ,its a seemingly empty maneuver that just expands them into thos fields more..

    and look what has happened to netscape... aol doesnt even support it anymore.
    ZippyDSM (AfterDawn Addict) 4 February 2008 0:54 Send private message to this user   
    Quote:
    Quote:
    But this move is kinda like AOL buying netscpae or ICQ,its a seemingly empty maneuver that just expands them into thos fields more..

    and look what has happened to netscape... aol doesnt even support it anymore.
    Lets face it Netscape was dead/dieing before they got to it and the mozzla team brought us fire fox no to long after AOL got netscape so meh it all works out.

    Also without innovation or care in its product Netscapes days were numbered and after the net bubble crash of the 90s they were never really the same.

    I was a netscape fan BTW but once 7 or 8 hit I just switched to IE.

    This message has been edited since posting. Last time this message was edited on 4 February 2008 0:58

    borhan9 (AfterDawn Addict) 22 February 2008 16:04 Send private message to this user   
    I hope yahoo does not sell out to Microsoft it will really be turned into a Microsoft product that would nered updates everyday and you would need download software eventually to make the search engine run on your PC. I would like to see yahoo keep going strong on their own.
    goodswipe (Inactive) 22 February 2008 16:07 Send private message to this user   
    Originally posted by ZippyDSM:
    Quote:
    Quote:
    But this move is kinda like AOL buying netscpae or ICQ,its a seemingly empty maneuver that just expands them into thos fields more..

    and look what has happened to netscape... aol doesnt even support it anymore.
    Lets face it Netscape was dead/dieing before they got to it and the mozzla team brought us fire fox no to long after AOL got netscape so meh it all works out.

    Also without innovation or care in its product Netscapes days were numbered and after the net bubble crash of the 90s they were never really the same.

    I was a netscape fan BTW but once 7 or 8 hit I just switched to IE.
    Yea, I use to use that browser back in the day, called it "nutscrape", man that browser sucked.

    "look honey, it said goodswipe! oh wow, that's amazing."
    iluvendo (AfterDawn Addict) 22 February 2008 16:16 Send private message to this user   
    Big Deal, I use google anyway, and M$ is not buying them!

    If it wasn't for bad luck, I'd have no luck!
    "The flimsier the product,the higher the price"
    Ferengi 82nd rule of aquisition
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