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Topic: Enterprise Software

Microhoo 2? Microsoft reportedly eyes Yahoo bid

Summary: Microsoft is reportedly at least considering an acquisition of Yahoo. This time, the price will be much lower than $33 a share.

Larry Dignan

By for Between the Lines |

Here we go again. Microsoft is reportedly pondering a bid to acquire Yahoo, but denials abound.

According to Reuters, Microsoft may look to a partner---say Silver Lake, Comcast or others---to acquire Yahoo or parts of it. If you recall, Microsoft tried to buy Yahoo in 2008, but was rebuffed in one of the tech world's biggest blunders of the last decade. In 2008, Microsoft offered to buy Yahoo at $33 a share. Today, Yahoo is less than half that sum even after a run-up on merger speculation.

Also see: Which parts of Yahoo (if any)would make sense for Microsoft to buy?

The speculation around Yahoo is only going to heat up as the company preps a financial pitch book to court buyers. For now, denials of the Reuters report are emerging via AllThingsD and Bloomberg.

Alibaba CEO Jack Ma has already noted he was interested in acquiring Yahoo. Russia's DST is also interested, according to Bloomberg. However, U.S. regulators may not be hip to the idea of Chinese and Russian companies buying Yahoo.

As a result, Microsoft could be a critical partner in any Yahoo takeover.

Why would Microhoo 2 make sense?

  • First, Microsoft and Yahoo are already partners and know each other well from the search deal.
  • Microsoft needs Internet traffic to improve its revenue per search figures.
  • And Microsoft can't afford to let another company acquire Yahoo and then scuttle its search partnerships.
  • Microsoft's online unit has lost billions of dollars and Yahoo's financial picture would improve results. To be specific, Microsoft has lost $8.5 billion online over the last 9 years.
  • Yahoo also has key international assets in China that could put Microsoft on better footing to fight software piracy.

For a trip down memory lane, here's a look at former Yahoo CEO Jerry Yang reflecting on the move to turn Microsoft away at $33 a share.

Topics: Enterprise Software, Banking, Browser, CXO, Microsoft, Social Enterprise

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23 comments
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  • the DOJ should reject the deal

    because M$ is a monopolist!
    The Linux Geek
    Reply Vote

    • No they're not.

      @The Linux Geek

      Sorry but that's just not true. They are a) not a monopoly in online search, advertising, or any of the other markets that Google dominates, and b) AFAIK, their antitrust oversight has also ended.
      Joe_Raby
      Reply Vote

      • It needs to be brought back

        Big time!<br><br>They have not learned the error of their ways and need constant oversight for an indefinite period of time.
        ScorpioBlue
        Reply Vote

  • RE: Microhoo 2? Microsoft reportedly eyes Yahoo bid

    I really *really* hate the word Microhoo. Even YahooSoft sounds better.
    Playdrv4me
    Reply Vote

    • How about &quot;Bingoo&quot;?

      ;)
      adornoe
      Reply Vote

  • RE: Microhoo 2? Microsoft reportedly eyes Yahoo bid

    <a href="http://www.myfikirler.com/hunca-life-ek-is-imkani.html" title="hunca life, huncalife">hunca life</a><a href="http://www.myfikirler.com/hunca-life-ek-is-imkani.html" title="hunca life, huncalife">huncalife</a>I really *really* hate the word Microhoo.
    bayilikler
    Reply Vote

  • RE: Microhoo 2? Microsoft reportedly eyes Yahoo bid

    $33 per share? OK, what's the total, so we can compare with M$'s losses.

    M$ *is* a monopolist, but not a stupid one. I can't see any advantage here, except to spare federal blushes if Russia or China were the only bidders.<br><br>While M$ may well be losing hand over fist on their online activities, I can't see that buying a short lease on Yahoo!'s visitors for a couple of $bn would help that situation; it would be pouring good money after bad.<br><br>And as Yahoo!'s once loyal visitors have been drifting away, M$ would have to keep spending to keep them.<br><br>I'm no M$ fan, but I'm happy to give them some free advice: "Don't Be Silly!"
    Heenan73
    Reply Vote

    • RE: Microhoo 2? Microsoft reportedly eyes Yahoo bid

      @Heenan73 if Microsoft buys yahoo, I will cancel my email with them and move everything over to google. People complain about google harvesting user information, to sell to advertisers. Microsoft is doing the exact same thing, yet we never hear complaints about that. So if Microsoft thinks they are getting my information to sell to others, then they have another thing coming. I would rather give up on computers, phones, the internet, etc. than let Microsoft have my information.
      Rick_Kl
      Reply Vote

      • RE: Microhoo 2? Microsoft reportedly eyes Yahoo bid

        @Rick_Kl You are not alone; a year ago, I knew a bunch of people who used Yahoo! Mail, and regularly browsed around Yahoo! - only one of them still does, and I reckon she'll move to gmail if M$ buys and 'improves the Yahoo! experience' - which of course they will. M$ would be buying a Bud with the bottom of the bottle missing.

        And I totally agree about the harvesting thing; Sure Google harvests, but they don't sell individual details, they sell aggregated data - many other 'big guys' sell everything to anyone, and I don't think M$ is as clean as Google.

        The problem for you, is that the writing is on the wall for Yahoo!, whoever buys it; come to Google ;o)

        (I mean that in a general way - while an unashamed G fan, I'm not involved in any way except as a happy user of G services)
        Heenan73
        Reply Vote

      • RE: Microhoo 2? Microsoft reportedly eyes Yahoo bid

        @Rick_Kl

        +1
        Return_of_the_jedi
        Reply Vote

      • RE: Microhoo 2? Microsoft reportedly eyes Yahoo bid

        @Rick_Kl
        Microsoft don't read you email unlike Google, you retard.
        illegaloperation
        Reply Vote

      • RE: Microhoo 2? Microsoft reportedly eyes Yahoo bid

        @Rick_Kl You just said Google is harvesting your data, but you will move to Google to avoid Microsoft harvesting your data. What did Microsoft do to make you sooo bitter? Microsoft invented a vast amount of the building blocks we use today on the Internet. Are they evil? Is Google Evil? Is Apple Evil? No, they are companies. Grow up. None of these companies will suffer because you leave their free service in your lame "protest attempt." Your individual information is guarded. Now, on facebook, that is where your specific information is for sale. You want to protest, cut the cord there.
        infomaniacal
        Reply Vote

      • RE: Microhoo 2? Microsoft reportedly eyes Yahoo bid

        @infomaniacal it is Microsoft and the incessant desire to rule the world that bothers me. Name another company that charges its customers for beta software? Name another company that gets a pass, for what other companies get roasted for? Name another company that gouges its customers and has a large group of fanboys that proclaim everything should be left to Microsoft? Which company charged for a bug fix (Vista to Windows 7)? Which company can post numbers without question, and have those numbers be taken as gospel? How about claiming to be the fastest selling OS, without producing hard data to back up that claim? Selling to the channel is not the same as selling to end users.
        Rick_Kl
        Reply Vote

      • RE: Microhoo 2? Microsoft reportedly eyes Yahoo bid

        @infomaniacal sorry to burst your bubble, but MS hasn't INVENTED squat....they beg, borrow, steal and then wrap it up in a pretty (and expensive) MS bow. Oh wait, they DID invent BOB....speaks for itself.
        dabbsil
        Reply Vote

      • RE: Microhoo 2? Microsoft reportedly eyes Yahoo bid

        @Rick_Kl

        + 1 again
        ScorpioBlue
        Reply Vote

    • RE: Microhoo 2? Microsoft reportedly eyes Yahoo bid

      @Heenan73 Was your post written in 2011? Microsoft is much further from a monopolist than they ever were. Android and Apple are two viable options that do not need a lick of Microsoft installed.

      I hope you keep current on technology, because your argument form 1996 does not hold water today, and doesnot bode well for you if you are in technologyfield . Besides, if you want to pick a company that has helped to obliterate entire industries, thy name is Google. Google is a bank now! Microsoft could not buy Intuit back in the day because they would be perceived as being a bank (really?). Yet Google, with a free reign within the Obama admin, starts a wallets service with scarcely a blink of an eye.

      Do no evil?, give me a break! Every company that assumes a dominant position, be it Apple, MSFT, Google, will pull the same kind of proprietary games to keep their position. It is in the handbook.
      infomaniacal
      Reply Vote

      • RE: Microhoo 2? Microsoft reportedly eyes Yahoo bid

        @infomaniacal Yet Microsoft still has the Monopolist mentality. Sure their tactics have changed, like using proxies to harm competition (SCO, and the Patent trolls in Canada). Sure every company would like to be the sole source of their particular segment. But Microsoft believes they are the sole sluice of all things digital, and will do whatever is necessary to hamper competition.
        Rick_Kl
        Reply Vote

    • RE: Microhoo 2? Microsoft reportedly eyes Yahoo bid

      @Heenan73 Google would give it's eye teeth to get the data on their users that facebook has. You can be a fan of Google all you want, but they lost by not having any demographic data on their customers. They are not as benevolant as you think, they actually screwed up, and Google plus is their lame attempt, 5 years too late, to get the facebook customers who gladly exchange their information over the web. Google's fault is it looked at the workld through a search engine's eyes.... facebook looks at it throught a marketing managers eyes. Google can pop up ads to people who want to buy a car. Facebook can deliver the demographics to you of people you know should want to buy your car. facebook is about demand creation, Google is about demand aggregation. Marketers want to spend more on former, because in a way, a Google customer is already sold, but a facebook customer, you can sell to them!
      infomaniacal
      Reply Vote

    • You're mighty old looking for your age.

      @Heenan73: .
      ye
      Reply Vote

  • RE: Microhoo 2? Microsoft reportedly eyes Yahoo bid

    How will this affect my newsletters,subscriptions,
    rss feeds etc.
    winstonchalmer@...
    Reply Vote
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