Even if the deal works out, financially, can they integrate culturally? Will Gate and Yang reconcile their differences and unlock the synergies? I found it interesting that YHOO’s shares went up by 10%, but MSFT dropped 1.3% last Friday…
I bet the bankers in Palo Alto are working their ass off for the deal. Would love to hear your thoughts.
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"Even if the deal works out, financially, can they integrate culturally?"
Microsoft doesn't really have a consistent culture, so if they don't work too hard on forcing "integration" it shouldn't really be a big problem.
"Will Gate and Yang reconcile their differences and unlock the synergies?"
For MSFT they would need to just outright fire most of their entire Windows Live, MSN,and Photos divisions and let Yang run them.
also the shares of the company being acquired will generally rise while the shares of the acquiror will generally decrease due to an acquisition, so that's relatively normal
it'd be a dumb merger in my opinion, but i'm no tech analyst.
there's been talk of this for months, if not years now. don't see any reason to believe it now.
of course Yahoo shares shot up, that company is reeling faster than a fisherman.
what about the $50 billion price tag? i got the number from thestreet.com and obviously it is just a ballpark number. anyone got an opinion on the valuation of yhoo?
Microsoft, Yahoo talks no longer active: WSJ By Gabriel Madway Last Update: 4:21 PM ET May 4, 2007
SAN FRANCISCO (MarketWatch) -- Talks between Microsoft Corp. and Yahoo Inc. over a possible combination are no longer active, according to a media report late Friday. The Wall Street Journal reported on its Web site that in recent months the two companies discussed a possible merger, but that the discussions are no longer active. The two companies may still explore other ways of cooperating, the Journal reported. Yahoo shares closed 10% higher at $30.98 on Friday following earlier reports that the company was in talks to possibly be acquired by Microsoft in a $50 billion deal.
http://www.marketwatch.com/News/Story/Story.aspx?guid=%7bA361A8DA-DBDE-…
This will be a horrible merger if it goes through. Let's look at the competing properties:
Yahoo Mail, Microsoft Hotmail Yahoo "Panama", Microsoft AdCenter Yahoo Search, MSN Search Yahoo Sports, News, ....
I think you get the point. For the past 2 years or so, Microsoft has been investing a LOT of money in its Internet services division. If they were to acquire Yahoo, they would have to switch over to Yahoo's (arguably) stronger properties, effectively killing all their work over the past couple of years. Would Microsoft (and more importantly, Ballmer) be willing to defeat? I very much doubt it.
Also, as someone mentioned before, the corporate cultures are NOTHING alike, and it is a strong possibility that a lot of Yahoo's key employees would leave following the merger, especially given the tech startup environment right now.
I definitely do not think this deal will go through. If for some strange reason it does, AOL + Time Warner will look like a match made in heaven, in comparison.
It's not going through. However, this is the only chance Microsoft has to be a real player in the internet ad space (which has been a major stated goal of Ballmer/Gates for a while now). I think they have to make a yahoo acquisition or just get out of the internet-ad-search business entirely. It is a tremendous waste of money.
While their ad-search business is what MSFT is after, they would be paying for all of Yahoo, and as I mentioned before, there is no reason for MSFT to put itself in a position to kill off it's own services. Yahoo's ad-search business alone is not worth anywhere close to $50 billion.
Besides, Microsoft's search marketshare has been rising over the past year along with Google's at the expense of Yahoo. Given this trend, I'm not sure the Microsoft guys can justify the hefty price tag.
Microsoft: "I can't beat my competitors, so I'll just BUY them!!!"
I hate their business model. Microsoft needs to learn how to make a good product.
Why is this being discussed? It is not going to happen
http://www.bloomberg.com/apps/news?pid=20601087&sid=a.vXPkA67erI&refer=…
Salam, of course it isn't going to happen. Both Popping and myself mentioned this in our posts.
We're just talking about why it would, or wouldn't be a good idea if it were to happen.
Well, in the case, here is my 0.02. If it had happened, I don't think it would have been as disastrous as people are making it out to be. Firstly, the joint company would have the potential to provide services that neither one is providing by itself:
It would suit both Yahoo and Microsoft as they have lost ground to google in the web space big time. That said, it probably wouldn't work out as they already have offerings as stated above.
If anything I think it would put more space between google and the others. As far as Microsoft buying its competition when it can't win thats just silly :-)
Hate or love the business model. They've achieved a lot in their 30 years of existence. It's a company I really like.
Goldman Sachs is advising Microsoft on a possible deal with Yahoo....Does any one know which IB is advising Yahoo on the discussions ?
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