Wow--Microsoft made an offer to Yahoo's board yesterday to purchase the company for US $44 billion--an amazing figure which is 62% above Yahoo's closing price on Thursday. Apparently MSFT also offered to purchase the company a year ago, but at that point Yahoo's board felt that recent reorganizations would re-ignite the company. Now, a year later, Yahoo has been struggling, cutting revenue forecasts and trying yet again to re-organize. Yahoo's stock has fallen 46% since October 2007.
I think that the combination of Microsoft/MSN with Yahoo could be intriguing. Combine Microsoft's footprint on the desktop with all of the various Yahoo services, and they could take a run at some of the moves that Google has been making lately, particularly in online applications.
Still, Microsoft has not shown to be a real visionary in the Internet space, and with Yahoo on the ropes, one has to wonder if the combined company has the ability to execute. We will see!
Friday, February 01, 2008
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