The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Microsoft Makes $44.6B Bid for Yahoo

Microsoft Makes $44.6B Bid for Yahoo

by , 7:50 AM EST, February 1st, 2008

Microsoft took a big swing at Internet giant Google on Friday when it presented a US$44.6 billion buy out offer to Yahoo. The two companies have not been able to overtake Google on their own, but acquiring Yahoo would put Microsoft in a much more competitive position.

Microsoft CEO Steve Ballmer stated "We have great respect for Yahoo, 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."

Google's strong position in the online search and advertising market has left Microsoft and Yahoo in the dust despite both companies efforts. By combining forces, Microsoft hopes to be able to take a bigger slice of Google's online advertising pie.

Microsoft's Platforms & Services Division president Kevin Johnson added "The industry will be well served by having more than one strong player, offering more value and real choice to advertisers, publishers and consumers."

Microsoft expects that the online advertising market will climb to $80 billion by 2010, doubling the $40 billion market of 2007 -- and by buying Yahoo the company projects it can generate an additional $1 billion a year, or as Microsoft called it, "annual synergy."

The acquisition offer comes only days after Yahoo reported a 23 percent drop in earnings, warned investors that the rest of 2008 didn't look promising, and announced that it was laying off about 1,000 employees.

The Redmond company isn't expecting any regulatory issues and, assuming Yahoo's Board of Directors and shareholders approve the deal, hopes to complete the half cash-half stock transaction in the second half of 2008.

Observer Comments

Show: Subjects Only | Full Comments
Close Name:grshaner Posts: 19 Joined: 07 May 2004
Subject: Like a Rock . . .

I will drop my Yahoo email account like a rock if this actually happens. All Gmail all the time.

I was listening to the latest episode of TWiT this morning, and heard Dvorak say that using Macs and PC's you get the impression that Bill Gates doesn't USE a computer anymore and that Steve Jobs does.

I fear what Yahoo! Mail will be like run by a guy who doesn't use it. No thanks!

Close Name:Guest
Subject:

what does Bill Gates have to do with it? He may be the face of MS but he's been hands-off for too long. Blame Ballmer. If they are even slightly intelligent, they'll keep Yahoo Mail as-is and kill Live Mail, the most useless email service this side of AOL.

Close Name:Sir Harry Flashman Posts: 792 Joined: 08 Feb 2007
Subject: Isn't Gates out of the picture

Quote
grshaner wrote:
I will drop my Yahoo email account like a rock if this actually happens. All Gmail all the time.

I was listening to the latest episode of TWiT this morning, and heard Dvorak say that using Macs and PC's you get the impression that Bill Gates doesn't USE a computer anymore and that Steve Jobs does.

I fear what Yahoo! Mail will be like run by a guy who doesn't use it. No thanks!


I am sure he still has influence, but isn't Bill Gates pretty much retired from running MicroSoft.

Anyway, I wonder how this deal, ere comes to fruition, will affect me. I have DSL from AT&T and they are tied in with Yahoo. The web page where I manage my account is yahoo.com. Other than service related notices from AT&T I don't really use the email addresses they give me as part of my service, but my SMTP servers are att.yahoo.com.

Close Name:Guest
Subject:

That'll make for a nice cash depletion from Microsoft.

Keep going, monkeyboy...

Close Name:Guest
Subject: Microsoft + Yahoo = Microhoo?

Great, Microsoft build their Online Utopia of unannounced, forced system 'upgrades', invasive license monitoring, subscription OS.

Double Great, thats one domain I never have to visit, maybe the rest of us non M$ types can build a proper, universally agreed standard online secure
experience.

Comment on this Article


You cannot edit your comments.   You cannot delete your comments.

Comments are currently closed. Please email the author instead.


Recent Headlines - Updated July 6th

Mon, 11:17 AM
Ted Landau's User Friendly View - Apple’s LED Cinema Display: A Too Short Story
11:11 AM
Product News - Photo Recovery for Mac Adds Photoshop Support
10:39 AM
Hot Forum Topic - iPhones in Education
8:47 AM
News - Apple Employee Injured in Store Shooting
Fri, 10:29 AM
News - Apple Warns of Learning Interchange Security Breach
7:30 AM
News - Happy Fourth of July!
Thu, 6:07 PM
TMO Scoop - Psystar Moves to Drop Bankruptcy Ahead of Apple Legal Battle
5:37 PM
News - Uncomfirmed Reports Say Apple & Nvidia On The Outs
4:57 PM
News - Microsoft Sick Over Barf Ad
4:09 PM
Product News - KRK Ships R6 Passive Studio Monitor for Recording
3:45 PM
John Martellaro's Blog - Particle Debris (week ending 7/2)  Juiced, Joost and Goosed
3:12 PM
Product News - ExactScan 2 Pro Released

The Mac Observer Reader Specials

  • Download Typestyler, still the Ultimate Styling Tool for Internet, Print and Video Graphics. Works great in Classic with a Native OS X Version on the way. Free Tryout: www.typestyler.com
  • OWC: Juice up your iPod w/NewerTech High Capacity Battery from $19.99. Free Installation. Videos for most models. Pro Installation Service w/FedEx Shipping From $57.95 (Battery Included).
  • Poker Mac If you're using a Mac, then you've gotta check out Full Tilt Poker for Mac. This Full Tilt Poker bonus code does the unthinkable, it actually rewards!
  • RamJet Memory: MacBook and MacBook Pro 4GB kits for $57.99! Mac Pro 4GB Kits $99.99! iMac and Mac mini 4GB Kits for $57.99! 1TB SATA Hard Drives for $109.99! Click here
  • For the latest Apple products use Ciao, a price comparison website, to find laptops like MacBook Air. Then find the best prices on MP3 players and use our comparison tool to evaluate mobile phones like the Apple iPhone.

  • Laptop Hardware Provided by TechRestore - Overnight Mac & iPod Repairs.
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!