Comments on: Microsoft bids $44.6 billion for Yahoo

Offer--described by Yahoo as "unsolicited"--amounts to $31 per share, or a 62 percent premium above its closing stock price Thursday.

[ppgreat]

And the market responds

Microsoft falls 4.5% in early trading....

[Vegaman_Dan]

With a 60% jump

Yahoo stock is currently at this time 60% up.

This is common for any buyout. You want to buy into the stock that is being bought out to make your profit. Buying stock in the company doing the buying isn't profitable at the start.

[fred dunn]

Google Down 9.2% at 10:13 CT

It'll probably bounce back up at the end of the trading day but because it's a Friday and people will start to get more ideas of what could happen I'll be interested in Monday's Google value and trades. The trades on Google right now are pretty fast.

[dmhallman]

The Zimbra factor!

Yahoo's recent aquisition of Zimbra could be a roadblock for this deal. As Zimbra competes as an open-source alternative to Exchange server (and has a great product by the way) many will frown on Microsoft's suddent control of this group.

[CrabkillaTX]

gone Zimbra will be

The Zimbra acqusition is a rounding error for the MSN/YHOO acquisition. If this goes through, Zimbra will be throw in the trash can. It certainly won't stop it.

[mgarfein]

wait and see.....

I keep my yahoo account out of convenience. If Msft makes it less convenient or I'm not liking what I'm seeing I'll just stop using the email.
Simple as that.

Also, I'm curious if anyone would know how this will play with the Eurpean regulators since Msft is already being whacked over the head for being a naughty monopoly?

[TomMariner]

I love Google, congrats Microsoft

I admire the mythology behind the founding of one of our greatest tech companies by a couple of grad students and then the best job of investing a stock sale fortune in history.

But as with everything, we really don't know how good Google could have been or can be. Because Google doesn't know. Well, competition from another very talented crew is going to light up our sky with creative fireworks that come from two phenomenal forces vying for our technical attention. And Google will find out how great they really can be!

Is capitalism great or what?

[cybervigilante]

Pot Accuses Kettle

"Today, the market is increasingly dominated by one player, who is consolidating its dominance through acquisition," Microsoft said

Is Microsoft talking about themselves or Yahoo ;')

The only difference is Google actually buys stuff, while Msoft stole most of their ideas.

[alanhouse]

MS Yahoo Merger

I've been a big fan, and user of Yahoo for as long as I can rember. I like there products and technologies. Personally, I think this merger would be great! It will give Yahoo (or it's people) more stability. And it will give MS a beter search engine and hostiing technology.

As long as they handle everything right. The down side (or dark side), would be if they ae just planning on buying out a compeditor, and just scrap/fire everyone.

Alan S. House
[e-mail]

[Heebee Jeebies]

New Name: Yahoo! Its Microsoft.

New Name: Yahoo! Its Microsoft.New Name: Yahoo! Its Microsoft.New Name: Yahoo! Its Microsoft.New Name: Yahoo! Its Microsoft.New Name: Yahoo! Its Microsoft.New Name: Yahoo! Its Microsoft.New Name: Yahoo! Its Microsoft.New Name: Yahoo! Its Microsoft.

[sanenazok]

don't smoke

don't smoke "something" from a pipe and then post. Take at least 24 hours off.

[petermpham2003]

Not sure ...

sorry for mispelling, 'dumb', not 'dump'.

[RompStar_420]

Yahoo, Access and you suck!

I remember when I used to use hotmail a lot until Microsoft bought it, and then I left (sure a lot of people sayed). The only reason why I choose to use Yahoo, was because it was friendly and not Microsoft, so as soon as Microsoft takes it over, I will abandon it. I will move over to Google more full time I guess.

Seems like I will have to install my own MTA on my Linux Box and run my own mail server and log in via my own browser window.

I am not worried at all, where there is an opportunity, someone will fill it's shoes.

I would have never paid 44.6 billion for Yahoo, crazy sum of money, no wonder MS stock went down today, I guess Microsoft doesn't care about what it's investors think, after all they are the ones that gave MS all that money and made Bill rich. MS stock hasn't done crap since 2000, 8 years.

[RompStar_420]

Apple can crush Microsoft Overnight

Apple has a secret card up it's sleeve, do you know what that is called ? OS X.

That's right baby, it already runs natively on Intel machines, all that Apple needs to do now is create a hack to overcome the BIOS problem and they can start selling OS X 10.5 on shelves in any Retail store for any PC.

Apple could crush Windows if they wanted to, they can establish driver relationships with vendors too, that isn't too hard.

[Penguinisto]

Well, yes and no.

First, check out this:
http://www.news.com/5208-1014_3-0.html?forumID=1&threadID=34818&messageID=373716&start=0

Then, ask yourself - with Apple's market share rapidly approaching 10% (after languishing at 3-4% pre-Vista), and their growth rates at near-explosive levels, why would they have to?

Yes, Michael Dell (the guy who runs Dell... go figure :) ) has already said publicly that he would positively love to pre-install OSX on his machines and start selling 'em. HP and Lenovo wouldn't be far behind.

OTOH, Apple has no real incentive to cast aside their insanely juicy per-unit sales margins, or their reputation for machinery that lasts nigh on forever.

/P

[Vegaman_Dan]

Apple would lose control

If OS X was sold for installation on non-Apple PC's, then they would lose control over the hardware environment and sales of new Macs would likely take a hit.

Would you want to buy a Mac for $2K or a PC base system with OS X for $1K.

Apple loses if they release the OS separate of the hardware. Unlocking it dilutes their hardware sales.

I know you can run OS X now on PC's, but that's a hacked process and not a simple retail box solution. It's also certainly not something Apple would be expected to support.

Then there comes the real issue- if Apple ever posed a serious threat, MS could simply buy them out with the spare cash they have laying around. It isn't a nice thought, but really, the money is there. Apple is worth more as a standalone 'competitor' to keep people happy at this point.

It's an old argument and nobody really wins.

[Andy kaufman]

Sorry to tell you this

but:
http://www.osx86project.org/

Hackers already found a way to get OSX working on Non-Apple PC systems.

Apple knows this, but prevents Non-Apple PCs from using OSX anyway.

Besides Linux beats OSX any day of the week.

[t8]

I wish they would

but the reality is that they think they need MS Office for the MAC and if they sold OSX for PCs, then Microsoft may withdraw Office.

But I think Apple should do it. The future isn't Office and anybody who buys it these days is really just a silly person with too much money to burn.

Google Docs and Open Office are better products and they are free.

[Sumatra-Bosch]

Sorta True - But a Dream as Long as Jobs Walks the Earth

Technically, it's not a huge jump, but would require negotiation of a number of tech and relationship details to get a white box version of OS X mountable on a third party machine onto the market. Institutionally, it's impossible as long as Jobs lives. He'll probably have it written into his will that Apple OSes only run on Apple hardware. Jobs is a thoughtful and greedy businessman who wants to retain the margins inherent in being the vendor of software and hardware. He's also an old fashioned store keeper in that he simply accepts taking care of customers as part of the deal of being in the consumer products space, crafting and supporting the user experience. The big threshold he overcame with his first computers was bringing a hobbyist machine into the home for everyday use. All of that experience is Apple's DNA now and there's no changing it. Microsoft's model is all about manipulating the manufacturing sector by creating and exploiting chokepoints to eliminate competition. The company's institutional culture was established by thoughtful and greedy businessmen who were at heart really just pedigreed lawyers with gangland sensibilities.

[brilo1]

Your wrong and here's why

Right. They also want the headaches that are associated with supporting a few hundred thousand pieces of hardware.
That's not my argument with what you're saying though. What I have an issue with is how you fail to see Linux as one that can crush them both. It's built off the unix platform, as OSx is, however it's entirely free. It supports all kinds of hardware is 100% entire free, and can run on cheaper hardware.
Linux could crush Apple and MS if they wanted to......oh wait, it's already beginning.

[Harry Conover]

MS-Yahoo Potential Merger

God protect us all ! MIS, which can't even manage its own portal, now wants us to believe it can merge AND run the best portal in the world (Yahoo) ? Come on ? Not to mention the thousands of Yahoo's who'll be looking for work since there's plleeeeenty of overlap between the existing companies. The only company I see gaining from this is..yep..you guessed it. Google.

[chris_d]

Not looking forward to this

I use yahoo groups and find it to be a great tool to communicate
with people about various things that interest me or relate to my
job. I can't image how microsoft will screw it up. Their
interfaces are terrible compared to both Yahoo and Google. The
new Yahoo Mail interface is quite nice and beats hotmail by a
large margin. If they buy yahoo I'm sure next year I will get a
message saying Microsoft Yahoo Groups requires Windows
Internet Explorer 8 with Windows Vista, click here to download
or click here to buy Vista.

I still don't understand though why Yahoo would need a merger.
They made over $200 million last quarter. If their balance sheet
was all red then I could see it... but now? Why?

[Sea of Cortez]

The real reason is AnooX search engine

That is why Yahoo or Google shares have dropped so much, which have made the Yahoo shares cheap enough for MS to buy them. After all who wants to pay 10 times more to Google or Yahoo for same search engine advertising that costs 1/10th on Anoox because Anoox is not-profit-motivated! It is the same as: who would want to buy Oracle when you can get MySQL for 1/10th of the price, or who wants to buy MS server OS software when you get Linux for 1/10th of the price?

Companies like Anoox, MySQL or Linux are just fundamentally changing the business plane for the software and Internet services industries. I give you my own company example: we are saving close to $5000 per month since we switched our advertising from Google to Anoox. Now multiply that by another Million small businesses and you can see why Google or Yahoo sales (shares) are going to be hurt the more Anoox is known. Go Go Anoox, Go Go inexpensive open source alternatives :)
Check this FAQ on Anoox and you will see why they are the better search engine:
http://www.anoox.com/faq-anoox.jsp

[nmcphers]

Sure you don't work for AnooX?

Cuz I've never heard of it before.

[Spartan_458]

There is a better search engine

It's called Ask.com.

[Jesse Chan]

Downfall of Microsoft Empire

I believe that this might be the end of Microsoft: http://fishtrain.com/2008/02/01/microsoft-is-their-own-downfall/

[Renegade Knight]

The Page Turned on MS Reality Is Catching Up.

Hard to say what the downfall will look like. The best outcome would be for MS to spin off all it's parts to shareholders. However it's already started to happen. It's going to take time for the giant that they are to hit the ground though. I'm guessing it's the lack of attention to customers that's the cumulative noose around their neck.

If they have that much to spend on Yahoo they could have fixed Vista and chose not to. That's why they will fall. That mentality.

[janmillardscott]

Microsoft's Offer for Yahoo!

This happens, I will no longer use anything Yahoo! or remotely related to Yahoo!

[keyringwest]

Both Second to Google!

Both are second to Google by a lot. So instead of 2 + 2 = 1, it will
probably be very bad, maybe 4. That's because putting together
two losers doesn't make a winner. You can fix a loser by injecting
technology and vision. But not two losers who have lacked vision
and technology on the web. Buy Google, sell Microsoft!

[wolivere]

Despite the comments

The other reader is right on many. Building a better mousetrap is correct to a point. There are so many factors Brand loyalty, Market Share, Government interference, and many times consumers who don't know better.

It does not take a person long to find all the other products that have come around in the past few thousand years that where "Better" but got quashed.

This is not new, when you are on top, the goal is to stay on top.

Is this bad buissiness? No not really who says Microsoft has to Technically inovate? They are good innovaters in there own market, but for other things, they do better then others with simle market share, and marketing.

I am not sure if you yourself understand the fundamentals of buissiness. But this is not abnormal. This is the way the world works.

heck the entire basis of the country of the US is based on this fundamental process. Do the best at what you can do, crush and buy what you can't.

[naterandrews]

Good Timing

Microsoft made this deal full well knowing they are desperate to score some wins on the ad/web front but they are not stupid. With Google currently bidding on the wireless spectrum, Microsoft knows that this will drain Google of a large portion of assets. A counter bid from Google is pretty much going to be an impossibility (market cap constantly shrinking, slowing growth/profit, and cash going towards the FCC auction) therein making this bid for Yahoo! a sure thing.

I think the premium is too high, but giving their competitors time to recoup funds is too risky so Microsoft needed to make this large bid. Yahoo! will most likely accept the offer- Jerry Yang publicly loathes MSFT but as a board member (and Chairman of YHOO) it is his fiduciary duty to explore options to give value to the shareholders.

[Penguinisto]

Err, you missed some bits:

1) Google would probably be refused anyway by federal regulators - if not in the US, then everywhere else. Thou Shalt Not Buy Thy Way to Monopoly.

2) Google is only ponying up to $10bn for the wireless spectrum. This proposal from MSFT is at $44bn. Big diff there...

3) Jerry Yang (and the board of Yahoo) may not have a choice if federal regulators refuse to let a convicted monopolist buy it.

/P

[The_Decider]

Why would Google be interested?

Anything of value at Yahoo can be developed at Google for a fraction of the price of this proposed buyout.

Google has the mindshare, all they need to do is make it reasonably decent, slap a Google sticker on it.

Then again why would MS be interested? They are already a giant slug. Adding more heft isn't helpful. They need to trim down and increase their agility. They are like an overweight 50 year old chasing in shape 25 year olds.

[JCPayne]

YAHOO-VERIZON-EBAY would be BETTER!

Yahoo got worse because they shut down all of the good stuff that made them Yahoo! They screwed up EGroups.com.... Yahoo used to have a HUGE following on the dicussioning boards on news.yahoo.com but they closed it "temporarily" then never brought it back.... WHY??????

In terms of Yahoo Instant Messenger, it has nothing now but SPAM since they merged their Instant Messaging product with Microsoft Messenger why?
Beacuse now the spammers are having a field day because it patches through to Yahoo too..... Nobody is willingly choosing to opt for Microsoft products.... that should tell them somthing......

Yahoo would no doubt end up worse under Yahoo.... Heck MSNBC was suppose to be "good"....
But no... NBC had to take their service back...

Hotmail was supposed to end up "better" too under Micrsoft...
but as you can see...Nothing doing.....

Yahoo also has had the Unix (Free BSD) crowds backing them for years. A Microsoft buyout will do nothing but firmly place the Unix Backers. (Thus the Apple backers too.) firmly into Google's camp too.....

Verizon or AT&T would be a better deal.... Or Google buying out Yahoo now that would be a sweet deal.....

Verizon and AT&T use Yahoo to power their Internet services so they would win out in a buy of Yahooo. Esp. Verizon which is rolling out FiOS and could use Yahoo as a nice content backend for their Fiberoptics service.... Yahoo would be a sweeet content deal for Verizon.....

See??

http://www.att.yahoo.com/
http://www.verizon.yahoo.com/

And it would be good for them too because Yahoo has partners around the world...

British Telecom
http://www.bt.yahoo.com/

Rogers Cable in Canada etc.
http://www.rogers.yahoo.com/