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Steve Ballmer: Microsoft 'lucky' it got rejected by Yahoo in 2008

Written by Andre Yoskowitz (Google+) @ 19 Oct 2011 23:59 User comments (2)

Steve Ballmer: Microsoft 'lucky' it got rejected by Yahoo in 2008 Speaking at the Web 2.0 Summit in San Francisco this week, Microsoft CEO Steve Ballmer has said the company is lucky it did not purchase Yahoo! in 2008.
When asked by the speaker "Are you glad you didn't buy Yahoo?," Ballmer responded, "You know, times change. When you ask any CEO [that type of question] after the market has fallen apart, it's 'hallelujah.' Sometimes, you're lucky."

In 2008, Microsoft made a massive unsolicited $47.5 billion bid for Yahoo, in an effort to merge the companies and better compete against Google in major markets. Yahoo co-founder Jerry Yang rejected the offer using a poison pill plan.

At the time, Yahoo was valued at around $40 billion. That figure has collapsed to just over $20 billion today, so it does seem that Microsoft got "lucky" in getting rejected.

Microsoft still signed a deal with Yahoo, which allows Microsoft's Bing tech to power Yahoo's search, in exchange for advertising sales.

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2 user comments

120.10.2011 1:06

MS definitely got the better end of this deal; yahoo should have sold.

220.10.2011 14:30

Not a very good judge of estimated economic gains/losses. Yahoo's stock fell under Yahoo's management. It's a fallacy to assume that the same would have happened under MS management and resources; although you could make a strong argument that it would.

This message has been edited since its posting. Latest edit was made on 20 Oct 2011 @ 14:30

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