Welcome!

Ruby Authors: Timothy Fisher, Colin Walker, Maureen O'Gara, Adam Blum, Ardath Albee

Related Topics: Web 2.0, SOA & WOA

Web 2.0: Article

Microsoft Bids $44.6BN for Yahoo!

Ballmer: "We believe our combination will deliver superior value to our respective shareholders."
By Jeremy Geelan
Article Rating:
February 1, 2008 07:30 AM EST
Reads:
 11,787
"The combination of these two great teams would enable us to jointly deliver a broad range of new experiences to our customers that neither of us would have achieved on our own," said Ray Ozzie, chief software architect at Microsoft, as the Redmond giant announced today that it has proposed to the Yahoo! Inc. Board of Directors to acquire all the outstanding shares of Yahoo! common stock for per share consideration of $31 representing a total equity value of approximately $44.6 billion.

"We have great respect for Yahoo!," said Steve Ballmer, chief executive officer of Microsoft, "and together we can offer an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market. We believe our combination will deliver superior value to our respective shareholders and better choice and innovation to our customers and industry partners."

In a statement, Microsoft reveled that ithas developed a plan and process "that will include the employees of both companies to focus on the integration of the combined business."

"Microsoft intends to offer significant retention packages to Yahoo! engineers, key leaders and employees across all disciplines," the statement said, adding:
"The combination will create a more efficient company with synergies in four areas: scale economics driven by audience critical mass and increased value for advertisers; combined engineering talent to accelerate innovation; operational efficiencies through elimination of redundant cost; and the ability to innovate in emerging user experiences such as video and mobile. Microsoft believes these four areas will generate at least $1 billion in annual synergy for the combined entity."
The full text of the letter that Microsoft sent to Yahoo!'s Board of Directors is here.

Published February 1, 2008 – Reads 11,787
Copyright © 2008 SYS-CON Media, Inc. — All Rights Reserved.
Syndicated stories and blog feeds, all rights reserved by the author.

More Stories By Jeremy Geelan

Jeremy Geelan is Sr. Vice-President of SYS-CON Media & Events. He is Conference Chair of the all-new International Cloud Computing Conference & Expo series, of the International Virtualization Conference & Expo series, of AJAXWorld RIA Conference & Expo series, and of the long-running SOAWorld Conference & Expo series. He's founder of Cloud Computing Journal, Web 2.0 Journal, AJAX & RIA Journal and other leading SYS-CON titles. From 2000-6, as first editorial director and then group publisher of SYS-CON Media, he was responsible for the development of all new titles and i-Technology portals for the firm, and regularly represents SYS-CON at conferences and trade shows, speaking to technology audiences both in North America and overseas. He is executive producer and presenter of "Power Panels with Jeremy Geelan" on SYS-CON.TV.

Comments (1) View Comments

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.

Most Recent Comments
Sixty-Two Per Cent??? 02/01/08 09:12:45 AM EST

Isn;t $31 a share a 62% premium on Yahoo!'s closing share price?