4 ms·

Microsoft bids $44.6B for Yahoo (2008)

11 points by ijafri 10y ago

wslh 10y ago
Yahoo is the perfect candidate for the next Microsoft write off. I wonder how these executives analyze these opportunities.
- dbbk 10y ago
  The article is from 2008...
ocdtrekkie 10y ago
Probably the biggest bullet Microsoft ever dodged considering what it eventually got picked up for.
- eganist 10y ago
  That deal with Verizon has yet to settle. http://fortune.com/2016/09/27/verizons-deafening-silence-on-yahoo-deal/ http://fortune.com/2016/09/27/verizons-deafening-silence-on-...
- mazesc 10y ago
  Not clear how Yahoo would have worked out within Microsoft.
- ksherlock 10y ago
  Verizon will pay $4.8 billion for the yahoo parts of yahoo. If you also include the $40 billon of Alibaba the total number is about the same (but Microsoft still dodged a bullet)
  - ijafri 10y ago
    Couldn't locate the 'Alibaba' word on the said article, I was assuming Microsoft had offered it for Yahoo alone ... as it was desperate for 'search' share?? are you sure, the bid included Alibaba share too??
    - gcb0 10y ago
      yes. there was no spinco or remainco as it has now with the fdic filings.
  - samfisher83 10y ago
    You have to factor time value of money. MSFT offer was greater.
    - totalZero 10y ago
      Interest rates have been pretty much zero that whole time.
      - samfisher83 10y ago
        http://www.investopedia.com/terms/c/costofcapital.asp http://www.investopedia.com/terms/c/costofcapital.asp
        totalZero 10y ago
        I'm a professional trader. Please don't insult me by linking to investopedia and saying nothing of your own. Money is pretty much free in an environment where interest rates are nearly zero. This is true whether you use debt or equity to finance a venture. If my risk-free rate is nearly zero, then I'd be willing to loan you money, or invest my money in your venture, for a fairly slim expected return.
deleted 10y ago
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rck404 10y ago
Yahoo and Microsoft compete in most of the divisions. Namely search, sports, news, video, mail, chat and advertising. Probably, the news & media part of Yahoo is the only thing better than Microsoft at this point; Even, that I don't see remaining as such for long time with MSN coping up well. So, if Microsoft would have acquired Yahoo they would have surplus of divisions and similarly talented people & infrastructure; Which would eventually lead to more layoffs and more time wasted consolidating teams, infra, design and resources.
deleted 10y ago
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11 points by ijafri 10y ago

wslh 10y ago

Yahoo is the perfect candidate for the next Microsoft write off. I wonder how these executives analyze these opportunities.

dbbk 10y ago
The article is from 2008...

ocdtrekkie 10y ago

Probably the biggest bullet Microsoft ever dodged considering what it eventually got picked up for.

eganist 10y ago
That deal with Verizon has yet to settle. http://fortune.com/2016/09/27/verizons-deafening-silence-on-yahoo-deal/ http://fortune.com/2016/09/27/verizons-deafening-silence-on-...
mazesc 10y ago
Not clear how Yahoo would have worked out within Microsoft.
ksherlock 10y ago
Verizon will pay $4.8 billion for the yahoo parts of yahoo. If you also include the $40 billon of Alibaba the total number is about the same (but Microsoft still dodged a bullet)
- ijafri 10y ago
  Couldn't locate the 'Alibaba' word on the said article, I was assuming Microsoft had offered it for Yahoo alone ... as it was desperate for 'search' share?? are you sure, the bid included Alibaba share too??
  - gcb0 10y ago
    yes. there was no spinco or remainco as it has now with the fdic filings.
- samfisher83 10y ago
  You have to factor time value of money. MSFT offer was greater.
  - totalZero 10y ago
    Interest rates have been pretty much zero that whole time.
    - samfisher83 10y ago
      http://www.investopedia.com/terms/c/costofcapital.asp http://www.investopedia.com/terms/c/costofcapital.asp
      - totalZero 10y ago
        I'm a professional trader. Please don't insult me by linking to investopedia and saying nothing of your own. Money is pretty much free in an environment where interest rates are nearly zero. This is true whether you use debt or equity to finance a venture. If my risk-free rate is nearly zero, then I'd be willing to loan you money, or invest my money in your venture, for a fairly slim expected return.

deleted 10y ago

[deleted]

rck404 10y ago

Yahoo and Microsoft compete in most of the divisions. Namely search, sports, news, video, mail, chat and advertising. Probably, the news & media part of Yahoo is the only thing better than Microsoft at this point; Even, that I don't see remaining as such for long time with MSN coping up well. So, if Microsoft would have acquired Yahoo they would have surplus of divisions and similarly talented people & infrastructure; Which would eventually lead to more layoffs and more time wasted consolidating teams, infra, design and resources.

deleted 10y ago

[deleted]