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Gates on Yahoo: It's the people

PALO ALTO, Calif.--Bill Gates is willing to pay a lot for engineering talent.

Asked what makes Yahoo worth more than $40 billion, Gates pointed not to the company's products, its huge base of advertisers, or its market share, but rather to Yahoo's engineers. Those people, he said, are what Microsoft needs to go after Google.

In an interview after his speech at Stanford University, Gates said that it turns out it takes a lot of manpower to build tools for advertisers, mobile, and video products as well as improving its core search algorithm and building an infrastructure … Read more

Report: Yahoo board divided over Microsoft bid

Microsoft's billions appear to have Yahoo's board divided, according to a report Friday in the New York Post.

On Monday, Yahoo sent out a press release stating that the board had "unanimously" rejected the bid.

But some of the company's independent directors apparently don't detect a solid alternative to selling to Redmond and see CEO Jerry Yang as taking an "emotional" anything-but-Microsoft approach.

In one camp are Yahoo Chairman Ray Bostock and billionaire investor Ron Burkle, according to the newspaper, while Yang appears to have support from Softbank's Eric Hippeau and … Read more

Microsoft shuffle leads to many promotions

Microsoft made its leadership changes official on Thursday, promoting more than a dozen executives and confirming the departure or pending departure of three top executives.

As expected, Windows VP Mike Sievert, online services senior VP Steven Berkowitz, and Windows Mobile head Pieter Knook are all leaving the company. Knook is heading to a new post at Vodafone, Sievert plans to start his own company, and Berkowitz will stay at Microsoft through August, as his duties transition to other executives.

Microsoft promoted several executives to fill the departures. Bill Veghte moves from VP to senior vice president and adds responsibility for … Read more

Mr. Microsoft goes to Washington

Update 1:50 p.m. PST: Added Microsoft's overall lobbying expense figures for the first half of 2007.

Here's a shocker: Microsoft lobbies Congress.

OK, so it's not. But it's interesting to keep tabs on how much the software maker is spending and who it's hired to do its bidding.

The Associated Press reported that Microsoft paid $160,000 last year to the firm Patton Boggs to lobby on "antitrust issues surrounding mergers and acquisitions in the technology sector." The bulk of that--$120,000--was spent in the second half of the year, … Read more

Microsoft's Knook headed to Vodafone

Well, we now know what other interests Pieter Knook will be pursuing. Knook, whose departure was expected to be announced this afternoon as part of a broader executive shuffle, is joining Vodafone to head up a new Internet services unit.

The unit will work on delivering consumer Web services on mobile devices and driving new revenue for the British carrier. Knook, a 17-year Microsoft veteran, will start on March 10.

Server and Tools executive Andy Lees is being tapped to run Microsoft's mobile unit, according to sources. Microsoft also recently hired Staples executive Todd Peters to head Windows Mobile marketing. … Read more

Microsoft's executive shuffle expected Thursday

Updated 10:30 p.m. with comments from Mike Sievert.

I'll say it again. Microsoft has a lot to learn when it comes to celebrating Valentine's Day.

A long-anticipated Microsoft executive shuffle will be formally announced on Thursday, according to sources familiar with the company's plans.

The move will see three top executives--including two prominent outside hires--leaving the company. Exiting Microsoft are: Senior Vice President Steven Berkowitz, the former Ask.com CEO who had been heading Microsoft's online services unit, and Mike Sievert, the former AT&T Wireless executive brought in to run Windows marketing. … Read more

Danger's price tag: Reportedly $500 million

Microsoft didn't say how much it was paying for Danger when it announced the deal on Monday. However, according to Om Malik, the price tag for the company was $500 million.

That's more than $1 million per employee for the company, which has 294 workers. However, the price tag makes some sense when you consider the company has taken in $225 million from investors and had been pondering an IPO.

Microsoft's acquisition track record

Update 1 p.m. PST: Added analyst comments throughout.

While Microsoft is no Oracle when it comes to acquisitions, the company has been getting accustomed to cracking open its oversized wallet.

Historically, Microsoft has focused largely on smaller deals to acquire technology, as opposed to megadeals to buy established businesses. Microsoft is, of course, in the throes of a multibillion-dollar bid for Net pioneer Yahoo.

"It's a different type of acquisition for Microsoft," Directions on Microsoft analyst Matt Rosoff said of the Yahoo bid. "It's a new way of thinking." (Rosoff is a contributor … Read more

Microsoft to buy phone maker Danger

Updated at 11 a.m. PST with Microsoft comments and more background on Danger.

Microsoft apparently is serious about the consumer cell phone business.

The software giant said Monday that it's acquiring Danger, the Palo Alto, Calif.-based maker of the T-Mobile Sidekick for an undisclosed amount.

"The addition of Danger serves as a perfect complement to our existing software and services, and also strengthens our dedication to improving mobile experiences centered around individuals and what they like," Microsoft entertainment unit President Robbie Bach said in a statement.

Danger's Sidekick brings many of the same abilities … Read more

Danger CEO sure he picked the right horse

Hank Nothhaft has pretty much the same approach as a CEO that he does as a thoroughbred owner--try to guide the race horse to the winner's circle.

Nothhaft, who has been running Danger since 2002, has known for some time that the company needed more resources to fulfill its potential.

For months, the company has been talking to Microsoft about strategic possibilities. At the same time, Danger had also filed an initial public offering to stay independent and raise money.

Ultimately, though, Nothhaft decided that the company really needed to be part of a bigger stable. Hence, Monday's … Read more