Well, that's that! Microsoft has officially pulled its bid for Yahoo! -- inflated for good measure this weekend by another $5 billion -- after the company did "not move toward accepting [the] offer",
asking again for
even more, another $4 bil (totaling $9b more than the
original offer). In a letter from Ballmer to Yang, he states that Microsoft also won't be looking at its option for a
hostile takeover, stating that Yahoo! likely "would take steps that would make [it] undesirable as an acquisition"; Ballmer then goes on to make a few backhanded criticisms of Yahoo's possible new partnerships with Google (which is no surprise). Good night,
Microhoo, the monstrous, hamstrung, lumbering mega-merger that might have been.
Update: Yahoo! makes its
public response here. Yang sums it up: "With the distraction of Microsoft
's unsolicited proposal now behind us, we will be able to focus..." etc. Alright then.
Reader Comments (Page 1 of 4)
fred @ May 3rd 2008 8:37PM
Yahoo stock = $2.00 Monday morning.
Flashpoint @ May 3rd 2008 8:43PM
Yahoo is currently above $28.00 a share.
And its been steadily increasing over the last 5 years. I own shares in Yahoo so I was suprised to see you say $2
fred @ May 3rd 2008 8:49PM
Just hope you're not surprised that it's not 28.00 on Monday.
Seth @ May 3rd 2008 8:53PM
Micro-boo! Yahoo is going to collapse on Monday, this is terrible news for shareholders of Yahoo. Oh well, I guess we won't see a Microhoo anytime soon.
Ryan @ May 3rd 2008 8:56PM
There is at least $10 of overvalue in Yahoo's stock right now, all from people expecting to make a little money over the buyout. After all Yahoo was trading at 3 year lows before the MS announcement.
I would expect it to go back to $20-$23 range EOW.
If you were smart you would sell and then only buy again if you really have to have a piece of a declining internet company sandwiched between two behemoths willing to spend themselves out of existence to win the web.
FrankTheCrank @ May 3rd 2008 9:12PM
Yahoo just pissed in someones punch bowl.
This is going to give Yahoo a shit load of clout. They just did what nobody else has ever done, told Microsoft "NO!".
Nice!
Mr.Tech @ May 3rd 2008 9:50PM
Short coming from Microsoft = Priceless
Jamar @ May 3rd 2008 10:26PM
That's just America. In Japan their share price is twice that and going up. Worst that could happen now is that Japan becomes headquarters instead of America (and that gets Softbank's foot in the door of the US market, whether it be for internet or for cellphones- bring it).
Shmoe @ May 4th 2008 2:05AM
It might be worth it to pick up Yahoo at $2 per share, but at $33, this deal would seriously hurt MS by depleting its reserves and send it's stock down. MS fans, Xbox 360 fans etc. should be glad this deal won't go through at $33 or more per share. And really, all of America should be glad it won't at that price. Imagine the economic mess this country would be in if MS collapsed and thousands of its employees were laid off. MS should have been focusing on spending money on getting studios to support HD DVD and in turn it's Xbox/Vista Media Center platforms and dealing a knock-out blow to Sony -- something that would have directly benefited MS Xbox and Vista customers. Gates and Ballmer need to get over the fact they lost the Internet search engine battle years ago by not looking at what was needed by Internet users at the time. Now it's time to focus on improving Vista and getting Windows 7 out on time with new, compelling features "Killer aps" that will give people a real reason to buy rather than Ultimate this and that. How about streaming DVDs/HD DVDs make that BluRays with Java encryption DRM (sorry MS, but Java's what you'll have to make work now that you let HD DVD die) from changers/stripped to hard drives and on to Xbox media extenders huh MS? Don't count on Internet downloads being the way to go. Internet connections fast enough to allow on demand services like IPTV on the Xbox (which hasn't been seen in the real-world yet) are not afforable and won't be for years. I could go on...
Snitch @ May 4th 2008 6:43AM
$2.00 Yeah right!!!! a lot of people are looking real dumb now after saying over & over that this was a done deal. You just don't walk to your neighbors & tell them your worth $40B, move out. Yahoo had a a good quarter but, i also believe is going to go down to the lower $20s but it will double by the year end, my opinion.
imransaddress @ May 4th 2008 8:28AM
lol
Sachin @ May 4th 2008 10:26AM
HAHAHAHAHAHA
"pubic response"...thanks for making my Sunday morning, Engadget.
TheCow5 @ May 4th 2008 10:58AM
@Shmoe
excellent point Shmoe.
I don't know if Microsoft is too big to look down and see it's own toes or that they think there so ahead of the game that they don't need to look back and see what ppl want.
Internet rentals of DVD and TV shows will kill sonys blueray we all know this, but thats some time off.
What I believe MS needs is a set top box like that of popcornHout for those who don't have an XBox 360, and allow it do a bit more such as streaming or download dvd's and TV shows.
They time to look pass the fact that they lost the internet search business.
Yahoo will was going down and will continue in that direction, MS may still get there hands on it and if they do it may be for even less that there 40Billion dollar offer.
I did believe this deal was a done deal and I did buy stocks in the company thinking it would be a good idea, now its time to sell and there will be lots of others like me, sory yahoo.
Chris @ May 4th 2008 11:23AM
"Internet rentals of DVD and TV shows will kill sonys blueray we all know this"
Ummm....no. There is a market for High Def content and the internet isn't ready for download of High Def content and won't be for a long while.
DP @ May 4th 2008 1:36PM
@Flashpoint
Brosef, when the bid first came in that spectacular morning you should have sold it then, because that is the highest price Yahoo's shares will be for some time.
Inelex @ May 6th 2008 5:07PM
Fred....What in the world were you smoking or thinking. YHOO is trading above 25! Don't have a clue do you......
AKBlade13 @ May 3rd 2008 8:37PM
Holy crap....
This will indeed go down in history....for better or worst.
AKBlade13
catachip @ May 3rd 2008 8:40PM
One thing... what's the point of putting your name at the end of your post, when it's right above your post already? Trying to forge some brand recognition?
robothouse @ May 3rd 2008 9:11PM
All right! Bloc Party!
Ghen @ May 4th 2008 7:51AM
cata: a number of people on different forums I visit like to 'sign' their posts as a form of respect to the reader. Most often is someone older from outside the US that hasn't picked up entirely on the casual atmosphere on the web, but they usually are bright people with good ideas.
CUBSWILLWIN @ May 4th 2008 9:12AM
thats true. Coudn't Yahoo just told microsoft that they really don't want the bid and will torment them if they don't pull it?
macserv @ May 4th 2008 1:41PM
Sounds like that's pretty much what happened.
Good for you, Yahoo! You did the right thing, and I believe that the vast majority of your shareholders will agree. Now go kick ass, please.
Alex @ May 4th 2008 5:30PM
Bloc Party!
BooYah!
sajl @ May 3rd 2008 8:39PM
http://digg.com/business_finance/Microsoft_withdraws_bid_for_Yahoo
Vic20 @ May 4th 2008 1:59AM
What a typo: Yahoo! makes its PUBIC response...
I suppose a case could be made for calling their response metaphorically hairy, twisted, and adolescent, but... never mind.
macserv @ May 4th 2008 1:42PM
"It said public. I changed it." :D
Matt @ May 3rd 2008 8:39PM
so sad, Microhoo has a great ring to it...
Shunnabunich @ May 3rd 2008 9:49PM
Really? I was thinking "Yacrohoot"...
TheGeektoriousBIG @ May 3rd 2008 10:20PM
Nah... "Yahcrosoft"
one1082 @ May 3rd 2008 8:40PM
I think this is good for Microsoft.. I was surprised they tried so hard anyway, it didn't seem worth it to me.
FrankTheCrank @ May 3rd 2008 9:09PM
Micro$oft=FAIL
The Dude @ May 3rd 2008 9:43PM
@Frank:
"Micro$oft"
I see what you did there with the $ sign. Are they aware of the serious pwnage you just attempted in spelling their name with a currency symbol? 'Cause goddamn that's gotta hurt. Ouch. Is "$teve Ballmer" next? I'm sure he'll be hurting because of the association with money.
You gotta be careful with these epic disses, man. Words can hurt.
*Cue*: The More You Know
Jeremiah Zachary Hoffman @ May 3rd 2008 10:00PM
"the dude" = awesome sarcasm. thank you for the laugh.
ByronGman @ May 3rd 2008 10:13PM
I so second that one1082.
Yahoo is a piece of bloatware... what in god's name were they thinking trying to acquire it?
I mean think of the savy little start-ups they could snap up with that money rather than make such a clumsy merger.
Jeff @ May 4th 2008 4:55PM
It WOULD have been fun to watch MS try a huge, awful merger like this though... would have made years of hilarious stumbling.
MS lucked out.
Flashpoint @ May 3rd 2008 8:40PM
The real power move was GOOGLE snapping up Youtube.
Youtube is going to end up being the most powerful media force in America as more cellular phone makers copy Apple and make phones that can get to Youtube via clients or - possibly Java/Flash.
John @ May 3rd 2008 8:57PM
Ive been able to watch youtube on my windows mobile device long before the iphone came out.
ScOObyDoo @ May 3rd 2008 9:10PM
Sooner or later people are going to be tired of watching the Star Wars kid, or seeing cute panda's fart. The future is real TV, not 30 second grainy clips of some skank lip syncing to Rhianna.
Wwhat @ May 3rd 2008 10:37PM
Hold on to that optimism ScOObyDoo.
Reader @ May 4th 2008 12:11AM
As long as friends send me funny/cool videos on youtube every so often they'll have my visits. Like this vid, especially as a game player, how can you not find it cool?
http://www.youtube.com/watch?v=Y5KFiCl640I
(Mortal Kombat with a keyboard & guitar)
John Bailey @ May 4th 2008 10:39AM
@ScOObyDoo
It isn't just "funny" videos. If it was, then they would eventually start sliding.
Have a look at the tech articles that have embedded youtube hosted project reviews, sites with anything from cooking demonstrations to music videos, movie trailers etc. Youtube is a video server that takes a huge amount of load off the respective sites. Think of it more as a media server instead of a website to watch people doing stupid stuff.
Logik @ May 4th 2008 2:41PM
The only thing Youtube is good for, now, is soft porn.
cubing @ May 3rd 2008 8:42PM
this is a great move by Microsoft.
When yahoo stock plunges on monday, yahoo board will be pummeled by shareholders and will be pressured to crawl to microsoft and beg for $25.
zorg @ May 4th 2008 7:31PM
For once I feel sorry for the Microsoft Fanbois who are forced to do a little tapdance to the tune of:
"Microsoft Actually Won Because Nobody Guessed Yahoo Stock Would Fall After This!"
Neal @ May 5th 2008 10:08AM
22.52 a share and falling fast (lost over $6 a share so far)
Anyone taking bets where it will level off today (if it should happen to level off)?
STP @ May 6th 2008 2:27PM
agree completely
Intelex @ May 6th 2008 5:06PM
Cubing, YHOO's stock is above 25...All Haters and pundits like you are unbelievers. Microsoft will do the crawling to someone else...Maybe its time to coerce that 1.6% stake in Facebook....
Javaflash @ May 3rd 2008 8:43PM
IT'S ABOUT DAMN TIME. Yang behaved like kid for 3 months.
Advice for Redmond - buy something "NEW," for god sake.
Dolemite @ May 3rd 2008 10:03PM
I am hoping that perhaps now Microsoft can focus on taking over Take Two instead. While an independent Take Two would be great, I think it still would be better under Microsoft rather than EA. Anyone is better than those filthy c0cksuckers at EA.
Shaun @ May 3rd 2008 8:45PM
I would have called it !Yahsoft.