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.
posted May 3rd 2008 8:33PM
Yahoo stock = $2.00 Monday morning.
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
Just hope you're not surprised that it's not 28.00 on Monday.
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.
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.
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!
Short coming from Microsoft = Priceless
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).
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...
$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.
lol
HAHAHAHAHAHA
"pubic response"...thanks for making my Sunday morning, Engadget.
@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.
"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.
@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.
Fred....What in the world were you smoking or thinking. YHOO is trading above 25! Don't have a clue do you......
Holy crap....
This will indeed go down in history....for better or worst.
AKBlade13
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?
All right! Bloc Party!
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.
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?
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.
Bloc Party!
BooYah!
http://digg.com/business_finance/Microsoft_withdraws_bid_for_Yahoo
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.
"It said public. I changed it." :D
so sad, Microhoo has a great ring to it...
Really? I was thinking "Yacrohoot"...
Nah... "Yahcrosoft"
I think this is good for Microsoft.. I was surprised they tried so hard anyway, it didn't seem worth it to me.
Micro$oft=FAIL
@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
"the dude" = awesome sarcasm. thank you for the laugh.
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.
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.
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.
Ive been able to watch youtube on my windows mobile device long before the iphone came out.
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.
Hold on to that optimism ScOObyDoo.
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)
@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.
The only thing Youtube is good for, now, is soft porn.
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.
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!"
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)?
agree completely
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....
IT'S ABOUT DAMN TIME. Yang behaved like kid for 3 months.
Advice for Redmond - buy something "NEW," for god sake.
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.
I would have called it !Yahsoft.
^^ How about Microyah!!
Thank Gods. This was one of the dumbest ideas to come out of Microsoft in a very long time.
$44.1B for Yahoo?
$49.1B?
Clearly someone in Redmond is on crack.
Yahoo is the one on crack... ;-)
Can you say shareholder lawsuit? I can. Yahoo will have to settle it for a lot of money. Also by withdrawing, Microsoft could probaly buy a controlling interest now on the open market for a lot less (~25.00 a share) and force a buyout without having it come to proxy fight. You have definitly not heard the last of this.
For better or worse....
they said no hostile takeover tho...
@Sean: Seriously. I can see this becoming a huge issue with the stockholders (I do see a lawsuit in the cards) and Yang, the Albatross that he is, might be deposed or gimped in power before the EOY. That's just my hunch, though.
How in the world do you turn down $33/share?! Seriously. Sucks for anyone who owns YHOO. Yang is crazy.
Can somebody clue me in..What does this mean.."They pulled there bid?" Does this mean that M$ is not going to go after Y! at all? Or does it just mean that they have pulled their money offer but they might go ahead with a proxy battle or some other type of way.
I need more than just Developing.....
They are not interested. Think of it as putting something in your basket at the market and then returning it to the shelf before checking out.
No deal, not gonna be a deal. Ever. Yahoo will be $16 or less by July 4th.
Funny how nobody talks about how this will affect MS shares, will people be happy they failed because they hated the plan and will it rise, or will they be disappointed they didn't manage an even larger monopoly and will they drop?
Incidentally, I think all the shareholders and the board were aware of the possible effects of an acquisition and its rejection, and weighed the pro's and contras already and there won't be some massive 'anger from shareholders', people that are interested in MS would have bought shares in MS already I expect and so they either have shares in both or don't want to have shares in MS through some merger.
Nor are people so impressed by normal share fluctuations I imagine.
Do ya REALLY think it's over?
If Microsoft is smart it is now.
Heh... exactly...
Yahoo needs this correction of reality and watch their stock plunge, MS should return when their stock is at the $15 neighborhood. They might be able to get over their stigma by then.
Bottom line Yahoo has users but I believe their number will decline, after all you can buy a lot of users for $44B. Its a hell of a premium for speed.
I'm glad...
As much as I like my 360 and some of MS products I didn't like the way they went about this Yahoo stuff...
"I didn't like the way they went about this Yahoo stuff..."
What? It's business, no more and no less. They offered some cash+stock. YHOO refused and held out for more. MSFT walked.
This is good for MSFT. Bad for YHOO. YHOO rattles on about their "true value." Well, their value is what the market says it is. Period. MSFT offered more than that.
Monday: YHOO down, MSFT up.
I'm shocked Balmer was able to walk away after that silly load of cash he blew on aquantive.
Isn't strange that iTunes started playing "Don't Stop Believin'" right when I read the title?
I am glad they pulled out. I felt Yahoo was way overvalued as is. I think Yang might just take this great Internet behemoth into the ground. Love their YUI stuff keep that coming!!
What Microsoft really needs is to start becoming more agile and really cut some flab off its own Internet division and really start thinking long term like the visionaries they were during the PC revolution. They have to get ready for Cloud computing which I think will be the future.
Have you seen Live Mesh? That's Microsoft's latest solution to cloud computing. It's like a platform where you can easily synchronize many devices with one another, and be able to share this info. with other contacts you want.
http://mesh.live.com/
Thank God. Yahoo isnt worth more than 5 billion, if that much. Not to mention come monday morning when yahoo stock price hits the basement...hilarity. In 2 to 3 more years yahoo will go the way of Excite and Infoseek.com.
Are you on crack?
Yahoo has the biggest mail portal on the web. They ain't going anywhere.
$49B for the biggest mail portal?
it is you who is on the crack.
no one uses yahoo for jack.
i actually use Yahoo! specifically for jack. but that's just me....
Yahoo really sucks & I'm just glad that Microsoft came to its senses & withdraw their offer !
Wow, all this hostility toward Yahoo, I'm glad they didn't merge, for Yahoos sake. I have been using My Yahoo, Yahoo e mail and playing Yahoo fantasy sports since my first internet capable computer and was disturbed by the prospect of what Microsoft might do to it.
Maybe Yahoo should just pull itself off the stock market and go private again. I enjoy my Yahoo experience, I always have and hope that it continues to improve incrementally as it has done since I first used it.
Hah! When Yahoo finds about $25Billion in cash to repurchase its shares from those who own them now. i.e. never going to happen.
This was one of the stupidest things Yahoo has ever done. When someone offers you way more money than you're worth, you take it. You don't sit there and ask for more...
I have a odd feeling that Yahoo's stock might actually rise...
lol, JAN 31, 2008 YHOO = $19, HI MICROSOFT!, FEB 2, 2008 YHOO = $29
Good triumphs over evil.
For now...
Yahoo is good? The people who rat out dissidents and get them in jail are good? Funny definition of good you have.
Just because one party is a cold-hearted corporation doesn't mean the other is any better.
Yes.. Because Microsoft is an evil corporation because it likes money! And Yahoo is a good corporation because...uhm... it likes money?
YAY for Yahoo!!! No fend off Google if they try to buy you!! I love Yahoo!! When I search I don't "Google" I "Yahoo!" I use Yahoo! Go, Yahoo! Mail, Yahoo! Messanger, Yahoo! is my home page and I use Yahoo! Local to look for places.
Trying to win a xbox?
Finally switched from AOL eh?
Yahoo! Go is the slowest POS I've ever had the displeasure of using.
Yahoo Tongue Emoticon to all the Yahoo haters and the people who ranked me low!!
LOL J/k guys.
( echoing voice of Obi-Wan right after Luke blows up the Death Star )"...Remember the Force will be with you, always..."
I think it was a shrewd move by micro. yahoo stock value will fall and mirco will come back with a lower bid. it may take a quareter or two but yahoo will problaly be acquired by year's end.
FUK MS
Microsoft would have made Yahoo! pathetic like itself.
First Microsoft gave Yahoo a deadline to accept an offer, threatening to do a 'hostile takeover' and is now, pulling out completely?
Either put up, or shut up Microsoft.
Either way, this is a good thing. Almost everything that Microsoft acquires, they've managed to fuck it up, right from day 1. Who knows what kind of mess they would have turned Yahoo and Flickr into.
I will be plan and simple. If Microsoft using force and takes over Yahoo....I end my service with them that I have had for 14 years. I am so not joking. I Microsoft takes over Yahoo, I am gone.
P.S. Am I alone on this?
Yea you are pretty much alone on that.
You are totally alone.
Hostile take overs occur all of the time. In this case Yahoo is overvaluing their stock. Failure to accept the deal will result in billions of lost dollars for Yahoo share holders.
It's only hostile because Yahoo is trying to extort MS for billions more than their value.
@ Laughing Man: ignore the Winbots from Redmond. There are plenty (me included) that will run for the door if Microsoft acquires Yahoo. I'll not be party to Sweaty Ballmer and his pack of copy weasels.
I would need to find a flickr replacement (which Microsoft would quickly rename Windows Live Photo Album Platinum Edition 2008).
Microsoft: The Freedom to Innovate (TM). Or Buy Someone Who Can (R).
I have no problem with the hostile take over. That is not my issues in that situation at all. If anyone took over yahoo but Microsoft, fine. Hell they could steal Yahoo at gun point for all I care. Microsoft is my problem, not the hostile takeover.
Thank you Quix for understanding my pain.
@Laughing Man : Go ahead. Switch. Why not switch now? Because when MS/Y! makes the next big thing (or could have), you'll be missing out because of stupid hatred of MS. That's the way to go, right? Just hate things and completely be ignorant and not use them at all.
And you're one of the few who's alone on this. Besides the oblivious nonsense MS-haters.
@Quik:
"I would need to find a flickr replacement (which Microsoft would quickly rename Windows Live Photo Album Platinum Edition 2008).
Microsoft: The Freedom to Innovate (TM). Or Buy Someone Who Can (R)."
Interesting. Considering that Y! was smart to keep Flickr intact when they acquired it (aside from making you get a Y! ID, and geotagging using Yahoo's poor Y! Maps), what makes you think that there will be such a massive change to Flickr? Any company that survives in this business for this long knows what's best to keep the users staying.
And when was the last time MS still used the stupid long-named product titles? Especially to a consumer-oriented service? You'd also be wrong using the word "album" since Flickr is NOT just albums, but photos that can be shared individually, and using the word "platinum edition" when there's already a pro account you can subscribe to within Flickr, and using "2008" when we're obviously not going to be stuck in this year forever, and it's a service, NOT a product.
And your labeling of MS is stupid. Freedom to Innovate? Can't anyone innovate if they want to? I doubt MS trademarked it. And if you want to look at another company who buys something they can't "innovate", look at Google. http://en.wikipedia.org/wiki/List_of_Google_acquisitions
Yahoo! had better hope history doesn't repeat itself:
1997 Compaq offer to Gateway: $7 Billion.
2007 Gateway sale to Acer: $710 Million.
2008 Microsoft offer to Yahoo!: $49 Billion.
2011 Yahoo! sale to ?: $4 Billion, if they are lucky.
There's a big new player going to enter the market in late 2008 or early 2009, so Yahoo! had better sell while the selling is good.
That's an awesome picture.
Finally a company that will stand up against Microsoft, and not sell out. Hopefully it's a trend.
Yahoo mail. Google search. All I want. Props to Yahoo, they got balls.
They sure do have balls. Lots of really stupid balls.
Maybe you should change your name to Yahoo. Maybe you are a yahoo. Do you have a round, yellow head, no hair and a big toothy grin?
Sigh. Can you name a company that MSFT executed a hostile take over against?
It's business. You get all emotional and act like it's a fucking drama and you will get pown3d.
Hint: don't trade stocks. If you cannot channel your inner Vulcan you are doomed to get beat like a dog.
Oooooo YHOO "stood up to" MSFT. BFD. We'll see how macho they look when they're trading at under $20 and begging News Corp to gobble them up for a fraction of the offer MSFT made. YHOO will be lucky to escape an epic shareholder revolt.
Again: it's business, not a high-school drama.