June 30th, 2008 — Acquisition, Microsoft
Microsoft buys Powerset, a brand new search engine, for $100 million. Remember we reviewed Powerset couple weeks ago?
Well, honestly I don’t think Powerset is worth anywhere near $100 million and I don’t know what Microsoft is trying to do but maybe it’s because their Yahoo deal didnt’ go through and they needed to waste some cash.
Good luck on this one Microsoft, you might have just bought a product that might not perform as much as you paid.
June 30th, 2008 — Acquisition, Microsoft, Search Engine, google, yahoo
Here’s an interesting comparison chart for comparing Google (GOOG) deal versus Microsoft’s(MSFT) for Yahoo(YHOO).
I am actually really thankful that Yahoo went with Google as they are a similiar-nature companies whereas Microsoft has been a “has-been” operating system company.
Even as a non-expert on company mergers, I cannot see how Microsoft deal can help “any” company. They really should fix their Vista or just recycle it somehow first.
Maybe Microsoft’s Live search is really on its last threads and they are trying to “buy” their way out into search engine wars.
Either way, I am all for no Microsoft, whether that’s my next computer or search engine.
June 4th, 2008 — Acquisition, google, yahoo
In a recent letter to Yahoo (YHOO) from the investor Icahn, Icahn states, “…if Microsoft is still willing to purchase our company and thereby create a true competitor for Google”.
What the heck is wrong with you man? You got too much money and now you are greedy for more but Microsoft won’t help Yahoo become a competitor to Google. This is a proven fact and everyone knows Microsoft is the worst company ever, they have practically killed their credibility with their blue death screens.
Our prediction is that Icahn will take money and run after the Microsoft-Yahoo acquisition. Correct me wrong if that’s not your goal, Icahn.
Stop trying to be greedy and think “business”. Your anger will not solve any problems or get you a new hummer.
May 18th, 2008 — Acquisition, Microsoft, yahoo
Great, Icahn just stirred Microsoft to do some more damage…
Microsoft announced that it is continuing to explore and pursue its alternatives to improve and expand its online services and advertising business. Microsoft is considering and has raised with Yahoo! an alternative that would involve a transaction with Yahoo! but not an acquisition of all of Yahoo! Microsoft is not proposing to make a new bid to acquire all of Yahoo! at this time, but reserves the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo! or discussions with shareholders of Yahoo! or Microsoft or with other third parties.
May 16th, 2008 — Acquisition, Microsoft, yahoo
Well, it looks like Yahoo did respond to Carl Icahn’s intention to be filthy rich and sell out to Microsoft.
Phew, another day saved, we don’t want to see Yahoo (YHOO) under Microsoft’s (MSFT) hands. The day we see Microsoft roll out it’s YahooVista engine will be the beginning of days when we see viruses and worms going all over the web.
Hackers love to hack Microsoft, I think it’s their branding. Just let Microsoft play with its Live search that no one uses and keep Yahoo out of it pleeez!
I wish Microsoft used all its billions of money to help to homeless or the cancer society instead of trying to get bigger all the time.
Here’s the response:
Dear Mr. Icahn:
We are in receipt of your letter with regard to your intention to seek control of Yahoo!’s board of directors.
Unfortunately, your letter reflects a significant misunderstanding of the facts about the Microsoft proposal and the diligence with which our board evaluated and responded to that proposal. A fair-minded review of the factual record leads to one conclusion: that Yahoo!’s ten-member board, comprised of nine independent directors along with Yahoo! CEO Jerry Yang, remains the best and most qualified group to maximize value for all Yahoo! stockholders.
Conversely, we do not believe it is in the best interests of Yahoo! stockholders to allow you and your hand-picked nominees to take control of Yahoo! for the express purpose of trying to force a sale of Yahoo! to a formerly interested buyer who has publicly stated that they have moved on. Please may I remind you that there is currently no acquisition offer on the table from that company or any other party. That said, we have been crystal clear in our stance that we have been and remain willing to consider any proposal from any party including Microsoft if it offers our stockholders full and certain value.
From the beginning of the process with Microsoft, Yahoo!’s independent directors focused on one central goal: how best to maximize stockholder value. At all times directing this process, Yahoo!’s independent directors carefully considered Microsoft’s initial unsolicited proposal, which was at the time valued at $31 per share. After considering input from its financial advisers the board unanimously concluded that Microsoft’s proposal significantly undervalued Yahoo! and was, therefore, not in the best interests of the company or our stockholders. While we rejected this offer publicly on February 11, 2008, we could not have been more clear in that communication and in every subsequent communication, both public and private, that we were and are willing to enter into any transaction that would maximize value for stockholders and provide them certainty of value.
The record of our efforts to engage Microsoft in meaningful discussions is unequivocal. Following receipt of Microsoft’s proposal on January 31, our board of directors has met over twenty times to review Microsoft’s proposal and Yahoo!’s other strategic alternatives. Throughout this process our board kept an open mind and an open ear. Our independent directors met with several of our largest stockholders to solicit their views and to make it clear that Yahoo!’s independent board is fully committed to maximizing stockholder value. In addition, at the direction of our board, our management team met with many of our investors to provide insight into Yahoo!’s strategy and views on value.
Our board’s openness also extended to Microsoft. Without reciting all of the contacts between us and between our advisers, the senior-most management of Yahoo! and Microsoft and the companies’ respective financial advisers spoke on numerous occasions and met in person seven times. During those meetings, Yahoo! discussed its strategic objectives in search and display advertising monetization, its perspectives on operating strategy and integration in a transaction with Microsoft, its perspectives on transaction synergies, and other non-price deal terms. Because certainty of closing is a critical issue, we sought to understand Microsoft’s thinking with regard to the regulatory issues associated with a potential transaction. In fact, at the board’s direction, our lawyers on March 28 asked for additional information in this regard, information which was never forthcoming.
On April 15th, a meeting was held at Yahoo!’s request. At that meeting, which included our respective financial advisors, we made clear, once again, that we were open to a transaction with Microsoft. During those discussions, Yahoo! made a detailed presentation of its strategic and financial plan, its thoughts on integration and its view with respect to the potential synergies that could be achieved in a transaction, essentially laying the foundation for Microsoft to understand—and respond to—our board’s conclusion that Microsoft’s offer substantially undervalued the company. Following that meeting we also provided to Microsoft a list of key non-price deal terms that our board believed were critical items to be addressed in a deal to provide reasonable protections for our stockholders.
Throughout this period, Microsoft continued to state that it would not raise its offer, and even suggested that it could lower it.
Despite this failure by Microsoft to respond in any substantive way to any of Yahoo!’s requests, on May 2nd, the same day we first learned of Microsoft’s apparent willingness to increase its proposal to $33 (although this oral “offer” was never delivered in writing and did not include details of a cash/stock mix), our board determined to continue discussions, instructing Jerry Yang to indicate to Microsoft that we would be prepared to enter into a transaction that valued Yahoo! at $37 per share and that provided reasonable certainty of value and certainty of closing. This was communicated to Microsoft in-person at a meeting in Seattle on May 3rd. With Microsoft’s offer at $33 and Yahoo!’s counter-proposal at $37, Microsoft elected, within hours, to walk away from the negotiating table and informed us that they were “moving on,” having never engaged further on price or any of the key non-price deal terms.
In short, Yahoo!’s board was at every point in this process prepared to enter into a transaction with Microsoft that would maximize stockholder value—and included certainty of value and closing. What Yahoo!’s independent board refused to do was to allow control of this company to be acquired for less than its full value.
That brings us to today. Our business is performing well as evidenced by our first quarter results. As we have publicly stated, our board continues to actively and expeditiously explore strategic alternatives to maximize stockholder value. None of the alternatives we are considering would preclude us from entering into a transaction with Microsoft or any other party.
We continue to believe that Yahoo!’s current board has the independence, the knowledge, and the commitment to navigate the Company through the rapidly changing Internet environment and to deliver value for Yahoo! and its stockholders.
We look forward to a productive dialogue.
Very truly yours,
Roy Bostock
Chairman of the Board
May 15th, 2008 — Acquisition
Holy crap. People “were” talking about how traditional media would be trying to take over blogs. Well, CNET (CNET) isn’t really a blog but still, this is a sign bloggers must work together so traditional media doesn’t take over the blogsphere. CBS (CBS) is really trying hard though to grab a big share of the online market as they have been really best “offline” in the past.
And that symmetry is apparently worth about $1.8 billion, which is what CBS just agreed to pay for CNET. The deals values CNET at $11.50/share, and puts a 45% premium on stock from their closing price yesterday. CBS, which is worth a little over $16 billion, is down just over 3% on the news as of 7:45 am PST. Silicon Alley Insider was among the first to break the news.
“The core businesses of CNET Networks and CBS Interactive represent near perfect category symmetry in premium online content,”
Quincy Smith, President, CBS Interactive.
Here’s my interpretation of CBS President, “By taking over CNET, we will have more chance to increase our online visibility and take over the blogsphere eventually.” Well, I might be over-reacting but you can enjoy some humor.
May 9th, 2008 — Acquisition, Mac, web2.0, yahoo
Yahoo acquires Inquisitor, a Safari Browser Plug-in. Safari is the default browser on MACs but you can download it for PC too.
I find that Safari is actually a pretty good browser, a lot better than IE7. I like how the text boxes show up differently for the same site you load on Firefox.
It looks like Yahoo is targetting Mac users (of course) through this acquisition.
Time will tell whether this plug-in will help Yahoo to gain a good share of Mac users. If that happens, Google might come up with something similar soon, if they are not working on it already…
Inquisitor 3, a search technology that auto-completes queries and delivers results right in Safari Web browser, is similar to Yahoo!’s existing Search Assist technology. Simply type in your query and websites will appear immediately, as well as suggestions for refining your search. Just as with Search Assist, the goal with Inquisitor is to help users find exactly the site they’re looking for as quickly as possible.
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