Posts Tagged ‘microsoft’

NEW YORK, Feb 1 (Reuters) – Microsoft Corp has made an unsolicited offer to buy Yahoo Inc for $44.6 billion in cash and stock, seeking to join forces against Google Inc in what would be the biggest Internet deal since the Time Warner-AOL merger.

In its boldest-ever acquisition move, Microsoft said on Friday it offered $31 per share for Yahoo, or a 62 percent premium over the Internet media company’s closing stock price on Nasdaq Thursday.

Yahoo, whose shares jumped to $30.75 in premarket trading, said it would evaluate the bid.

Microsoft shares, which have a market capitalization of about $300 billion, fell 6 percent to $30.78.

Speculation over a Microsoft move on Yahoo has swirled for at least a year, as investors wondered whether the two would seek a joint stand against an ever more powerful Google.

Internet audience researcher comScore estimates Google’s share of the worldwide Web search market has reached 77 percent, while Yahoo is second with 16 percent and Microsoft was a distant third with 3.7 percent.

“Microsoft’s wanted to do things that could build up its online business dramatically,” said Brendan Barnicle, an analyst at Pacific Crest Securities. “This is going to be a big bet for them. But I also think it’s where they see the market going, so they really needed to get there.

“This is more than a shot across the bow at Google, because you put these two guys together who are basically two and three in search and makes them far more relevant,” he added.

Critics of a tie-up, however, have pointed out that Microsoft and Yahoo have very different corporate cultures and many overlapping businesses, from instant messaging to email and advertising, as well as news, travel and finance sites.

“To me, the premium seems exorbitant, for what is a dwindling business. I personally don’t see how the synergies of Microsoft-Yahoo is going to take on Google,” said Tim Smalls, head of U.S. stock trading at brokerage firm Execution LLC.

Yahoo attracts more than 500 million people monthly to a range of media sites including Yahoo Mail, the world’s biggest e-mail service for consumers.

It has been losing market share to Google in the increasingly strategic Web search market, and warned earlier this week that Yahoo faced “headwinds” in 2008, forecasting revenue below Wall Street estimates.

Microsoft said the online advertising market is growing rapidly and expected to reach nearly $80 billion by 2010 from over $40 billion in 2007. It added it is “increasingly dominated by one player,” referring to Google.

“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,” Microsoft Chief Executive Steve Ballmer said in a statement.

Microsoft, the world’s largest software company, said it had identified four areas that would generate at least $1 billion in annual synergies for the combined entity.

Under the proposal, Yahoo shareholders can choose to get $31 cash, or 0.9509 of a share of Microsoft common stock. The deal in aggregate must consist of one-half cash and one-half Microsoft common stock, it said.

Mark May, analyst at Needham & Co, said that while the price is a premium to Yahoo’s recent trading price, it was in line with its average trading value over the last 2 years.

“I would not be surprised to see this bid have to be raised over time,” he said. “I think there are companies out there like Comcast (Corp) and Viacom (Inc) and others that still need to address the emergence of online media and haven’t. So there are clearly other strategic companies out there.”

The Microsoft-Yahoo deal would be the largest in the Internet market since the $182 billion purchase of Time Warner Inc by AOL in 2001, which was seen as the worst merger in recent corporate history, with clashing corporate cultures and many of the promised synergies never materializing. (Reporting by Franklin Paul and Tiffany Wu; Editing by Lisa Von Ahn/Jeffrey Benkoe)

Copyright Reuters 2007. All rights reserved.

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Microsoft needs a new ECO

Posted: November 25, 2007 in Funny
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Bill Gates organized an enormous session to recruit a new Chairman for microsoft Europe.

Exactly 5,000 candidates assembled in a large room. One candidate is MARIO DIMACULANGAN.

Bill Gates: Thank you for coming. Those who do not know JAVA may leave.

2,000 people leave he room.

MARIO says to himself, ‘I do not know JAVA but I have nothing to lose if I stay. I’ll give it a try’

Bill Gates: Candidates who never had experience in managing more than 100 people may leave.

2,000 people leave the room.

Mario says to himself ‘ I never managed anybody but myself, but I have nothing to lose if I stay.

What can happen to me?’ So he stays.

Bill Gates: Candidates who do not have management diplomas may leave.

500 people leave the room.

Mario says to himself, ‘I left high school at 15 but what have I got to lose?’

So he stays in the room.

Lastly, Bill Gates asked the candidates who do not speak Serbo – Croat to leave.

498 people leave the room.

Mario says to himself, ‘ I do not speak one word of Serbo – Croat but what do I have to lose?’

So he stays and finds himself with one other candidate. Everyone else has gone.

Bill Gates joined them and said ‘Apparently you are the only two candidates who speak Serbo – Croat, so I’d now like to hear you have a

conversation together in that language.’

Calmly, Mario turns to the other candidate and says `Ano ba yan, dong?’

The other candidate answers ‘Ewan ko, pare.’