Yahoo Second To Beat Microsoft
In tech world even Microsoft is vulnerable. I think expansion of Google will choke Microsoft to death in 3-4 years. Yahoo acquisition is an attempt by Microsoft to put on weight to make it difficult for Google to digest it.
When I slam Narayan Murthy, Ratan Tata and Ambani, I know they are not even trying to compete and develop any technology- they have not taken any patents. Infosys, TCS and Wipro are only helping multinationals by doing their low value garbage work.
First Sabir Bhatia made Bill Gates beg for his Hotmail internet free e.mail service and sold it for $400m which in turn was an admission Microsoft couldn’t match Sabir in commercializing computer based technologies.
Second time it is again free e.mail service provider Yahoo founded in 1995 that has left behind Microsoft e.mail service.
MS is said to be ready to invest $50b to acquire it final price could be $80b.
Microsoft googles Yahoo buyout TOI Delhi P-21 May05, 2007
From Tech To Media Cos, Global Market Is Rife With Acquisition Talk, Share Prices Soar
New York: Microsoft, the world’s largest software firm, is mulling a $50-billion bid for internet giant Yahoo in one of the biggest takeover deals in the technology space, US media reports said. The deal, if successful, could leave a huge impact on the global it space, including India where both Microsoft and Yahoo carry big brand value and enjoy significant exposure.
According to Wall Street Journal and New York Post, Microsoft, which has a market cap of close to $300 billion, has intensified its pursuit for Yahoo after holding informal talks over the years.
The renewed talks come amid growing threat by search engine and online advertising giant Google for both the companies. In fact, Google replaced Microsoft as the world’s top brand only last month.
The new approach follows an offer Microsoft made to acquire Yahoo a few months ago, the New York Post reported quoting unnamed sources. While Yahoo! had spurned the advances of the Redmondbased software giant in the past, Microsoft is now seeking to re-enter formal negotiations, it said.
The daily said that market sources are putting a roughly $50 billion price tag on Yahoo.
Shares of Yahoo jumped over 15% in early morning trade on US bourses, taking its market value to about $44 billion from $38.2 billion on Thursday. Both Microsoft and Yahoo have significant exposure to India. The expanding number of internet and mobile users in the country is attracting these two companies, who are eyeing businesses in this market to add to their future growth.
Microsoft’s India presence is estimated at around 5,000 employees, which it plans to expand to 7,000 in two years, while Yahoo’s Bangalore development centre just crossed the 1,000 employee mark.
Both Microsoft and Yahoo have announced bullish plans for India, with the latter inaugurating a new R&D facility late last month with seating capacity for 1,600 workers. The US-based search giant said last month it sees India as the next big opportunity and the country was one of its top priorities for future expansion. AGENCIES
Microsoft in $50-billion talks to buy out Yahoo
Executives Of Both The Companies Are In Early-Stage Discussions For A Merger Or Some Other Kind Of Matchup
Agencies NEW YORK ET Delhi May05, 2007 P-1
MICROSOFT Corp is resuming its pursuit of search engine operator Yahoo, which could help it compete better with Web search leader Google, published reports said on Friday. Yahoo shares jumped 17.96% to $33.24 in Nasdaq trading on Friday while Microsoft shares fell 1.26% to $30.58.
The New York Post reported on Friday that Microsoft has asked Yahoo to enter formal negotiations for an acquisition that could be worth $50 billion ( € 36.87 billion). Yahoo’s m-cap was about $38 billion ( € 28.02 billion) on Thursday. Redmondbased Microsoft had no immediate comment on the report, spokesman Lou Gellos said on Friday.
The Wall Street Journal said executives of the two companies are looking at a merger or some other kind of matchup and said the talks appear to be in an early stage. It said the companies explored the idea of merging last year but the talks led nowhere. Both the reports cited unidentified people familiar with the situation.
"It's been talked about for a long time, ever since Google came into the picture.
I can't imagine a more perfect deal," said Peter Lobravico, vice-president of risk arbitrage sales/trading at brokerage Wall Street Access. "You can't find a stronger buyer than Microsoft and while it would spur a lot of political and regulatory noise, everyone knows in the end that the deal would go through."
Industry analyst Matt Rosoff with Directions on Microsoft in Kirkland, Washington, said a huge takeover is unlikely, noting that it would duplicate services that MSN already provides, such as instant messaging and e-mail. It is possible, Rosoff added, that Microsoft and Yahoo might be talking about a deal involving only online search advertising.
Microsoft is feeling increasing pressure to compete with Google, which plans to beef up its portfolio with a $3.1-billion purchase of online advertising company DoubleClick.
Microsoft currently trails both Yahoo and Google in the lucrative and growing business of Web search. Google won a search advertising deal with AOL in 2005 that the Post said Microsoft wanted. In addition, Google is developing Web-based software that directly competes with Microsoft Office.
The Post story said Microsoft and Yahoo have held informal talks over the years and said Microsoft’s latest approach to Yahoo signals increased urgency.
Earlier this week, Yahoo said it would buy 80% of advertising exchange Right Media for $680 million (€ 501.44 million), increasing its stake in that company to full control.