Home > Finance, International Issues > Clock ticking between Microsoft and Yahoo!

Clock ticking between Microsoft and Yahoo!

Microsoft just released their letter to Yahoo! about their plan to acquiring the company with date line given. Due to their offer in February was rejected because underpricing the price. Now, Microsoft come with the idea to do hostile takeover from the stakeholder approach if Yahoo! didn’t accept this second offer for $41 Billion.

This pressure from Microsoft to Yahoo! will impact for their shares in the market as investor perception about this hostile takeover, where Microsoft will give a bad offer if Yahoo! rejected the offer this time. What Yahoo! can do to protect this kind of threat is by staggering their board of director, so they still have some kind of “invisible hand” for the company, which I don’t know is it any regulation that regulate about this issues in US.

What will be the questions now? Do this takeover will bring a positive impact for the two company? especially from their stockholder value? What competitive advantage will Microsoft get after acquiring Yahoo! despite their search engine and market share for their well known Yahoo!Mail? As an Investor its time to watch and see, what will happen next for this two big company will struggle for the take over impact.

  1. April 7, 2008 at 10:44 pm

    Nooooo, I’m the big fan of Yahoo and against its acquisition by Microsoft, haha.
    I heard that Yahoo rejected Microsoft’s offer because Microsoft undervalued Yahoo and its ability to make a progress in the future. Well, have no idea, I meant, it’s hard to imagine the merger of two behemoths which, I guess, must have different principles, philosophies, and etc etc.

  2. April 8, 2008 at 6:56 am

    Damn, Microsoft is eager to conquer the internet. In my opinion, they’re afraid of Google’s dominance in search engine industry, so they’re finding ways to stop this condition. Because Google is growing so rapidly and they’re obviously a big threat to Microsoft since they’re planning to expand their business.

  3. April 15, 2008 at 8:39 pm

    just remember the acquiree price is going up until it’s finalised. but then the acquirer value goes up afterwards. it’s not easy to make a deal when the market is watching. why doesn’t yahoo just cancel the plan and sell to hedge funds letting them bet on yahoo’s value? why would happen if the deal is never closed?

  4. April 23, 2008 at 11:53 am

    @yuki, gbm

    me Yahoo big fan too, Google do look it as a threat for them. However, Microsoft seems want to expand their business in different way.

    @anymatters,

    the price do jump quite high today, but both of them seems to keep resisted on their point.

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