Watching the Microsoft-Yahoo show? Here are two figures to watch in the coming weeks:
$1.32 billion and 11 cents.
Yahoo is projected to generate $1.32 billion in revenue and earn 11 cents a share for the first quarter, according to analysts' estimates collected by Thomson Financial.
Anything less than that when the company reports its first-quarter results on April 22 could apply greater pressure on Yahoo to accept Microsoft's unsolicited buyout bid that was initially valued at $31 a share. This especially holds true if no other white knights emerge to make a deal with Yahoo.
One … Read more
With the Google-DoubleClick merger wrapped up Tuesday, Yahoo may face even greater pressure to find itself a buyout partner, according to Wall Street analysts and investors.
The Google-DoubleClick deal presents a greater threat to Yahoo's business of providing both Internet search advertising and display advertising, note analysts. And, as a result, Yahoo now has another issue to contend with, beyond Microsoft's unsolicited megabillion dollar buyout deal waiting in the wings.
"The Google-DoubleClick deal provides further firepower to Microsoft to win over Yahoo," said Mark May, an analyst with Needham & Co. "Microsoft's bid price … Read more
It looks like News Corp. won't be Yahoo's knight in shining armor, after all.
News Corp. does not plan on fighting Microsoft over Yahoo, Rupert Murdoch told investors at the annual Bear Stearns media conference.
"We're not going to get into a fight with Microsoft, which has a lot more money than us," Reuters reported.
Yahoo has snubbed Microsoft's unsolicited $41.4 billion takeover bid as undervalued. To thwart Microsoft, Yahoo had been talking to News Corp. about possibly combining MySpace.com and Yahoo, according to reports.
Yahoo's first quarter is coming to a close at the end of the month, potentially increasing pressure on the company to decide whether it will negotiate with Microsoft over its unsolicited buyout bid.
The close of the quarter, after all, will be accompanied by a conference call the company will hold with analysts to discuss its financial results.
"I think the first-quarter earnings will be a hard deadline," said one investment banker. "They'll need to address things like their restructuring initiatives, earnings, and how it would look if they merged with company X, verses remaining … Read more
Cash is king in deal making, and Microsoft's unsolicited bid for Yahoo may be throwing more greenbacks into the mix, according to a report in the New York Post.
The report, citing anonymous sources, says Microsoft is considering changing the way the deal is valued to 100 percent cash.
Under its current offer, Microsoft is valuing the deal using a formula that is based on 50 percent cash and 50 percent Microsoft stock. As a result, the value of Microsoft's offer rises and falls based on the performance of its own stock price.
Silicon Alley Insider has a … Read more
Yahoo's resolve in fending off Microsoft's unsolicited buyout bid appears to be softening.
Early Monday morning, Microsoft's Chief Financial Officer Chris Liddell told attendees at Morgan Stanley's Technology Conference that Yahoo had not formally responded to its buyout bid and the software giant was keeping an eye out for other acquisitions.
That same day, Yahoo's board of directors voted to amend the company's bylaws, in a move designed to delay a hostile proxy fight with Microsoft and give it more time to explore its options in finding another suitor.
The take-away from this action … Read more
Jerry Yang, Yahoo's CEO and co-founder, and Yahoo Chairman Roy Bostock issued a note to employees on Wednesday following the company's announcement that it is extending the deadline to nominate opposition candidates to its board. Here is the text of that memo:
we want to update you on some news we announced this morning. yahoo!'s board has decided to extend the deadline for nominating directors to our board from march 14th to 10 days following our announcement of a date for our annual stockholders meeting. we have not yet announced the date of this … Read more
Yahoo announced Wednesday that it is extending the deadline to nominate opposition candidates to its board of directors, a move that will likely delay a hostile proxy fight with Microsoft.
The deadline had previously been set for March 14, but now will be extended to a new deadline of 10 days after Yahoo announces the date for its shareholders meeting.
In its announcement, Yahoo stated:
"As the company has not yet announced the date of this year's annual meeting, the amendment will give stockholders who want to nominate one or more directors, including Microsoft Corporation, more time to … Read more
Under a possible deal, Yahoo would acquire Time Warner's AOL in exchange for the media conglomerate taking a large minority stake in the combined company, according to unidentified sources familiar with the matter. The companies could save $1 billion a year, the sources said. Talks between the companies held earlier heated up when Yahoo reapproached Time Warner about a proposal to take to its board.
Meanwhile, Yahoo and News Corp. continue to … Read more