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Microsoft-Yahoo merger talks underway?

updated 04:00 pm EDT, Fri May 2, 2008

MS Yahoo Merger Underway

Microsoft and Yahoo are in genuine talks to agree on a merger, the New York Times says. The report claims to know people involved in the negotiations who say that Microsoft has agreed to raise its $31 per share bid by "several" dollars, in effect overcoming resistance by Yahoo to a deal which the latter has previously said undervalues its business. The conditions for the deal are in flux and aren't currently available.

These same sources also caution that a merger isn't certain and that the talks could either be hindered by specific details or fail outright if certain terms aren't met. Major shareholders are also reportedly being polled as to what values they would accept for a per-share offer and, in some cases, have been holding out for $35 per share.

If accurate, the sit-down between the two companies will represent the end to a three-month-long deadlock that began when Microsoft first submitted its deal. Microsoft has so far insisted that its bid, initially worth $44 billion, was equal to or above Yahoo's actual value and has recently threatened both to circumvent Yahoo's board of directors by making an offer to shareholders as well as to back out of the deal if Yahoo refused the originally offered terms.

Neither company involved in the discussions has commented on the subject, though any such merger may complicate a similarly rumored Google AdSense deal that Yahoo has been considering to guard against a low Microsoft takeover bid.

 
Previous Comments

say goodbye

05/02, 04:12pm reply

when we look back in 10-15 years this will be the event we all agree killed microsoft. not dead, but think chrysler style irrelevance.

i'm increasing my stakes in apple/google as much as possible.

dashiel

Fresh-Faced Recruit

Joined: Sep 2001

0

killed microsoft?

05/02, 04:15pm reply

gee I dunno about that. I think Visturd has done far more to kill/doom MS to irrelevance.

But yeah, I fail to see what MS brings to the table which will enable it to turn Yahoo into a Google-slayer. It sure isn't their vision or forward thinking or satisfying the needs of customers.

climacs

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Joined: Sep 2001

0

Hmm

05/02, 05:02pm reply

After they buy Yahoo they will try to convert everything over to Windows Server from Linux/MySQL. This of course, will fail miserably like it did when they tried to convert Hotmail.

afaby

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Joined: Jul 2005

0

Ok...

05/02, 05:03pm reply

ive got my list of new accounts to create. I'm finding the spammers to subscribe to.

Haroscarfel

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Joined: Nov 2007

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at&t/Yahoo

05/02, 06:24pm reply

If you're an at&t/Yahoo DSL customer you can probably kiss Mac compatibility goodbye too. The current at&t/Yahoo main page barely works with Safari now. Imagine what it'll be like when everything is built around IE and Active X!

lkrupp

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Joined: May 2001

0

Microcrap

05/02, 06:51pm reply

"I fail to see what MS brings to the table"

Don't you know ?

They bring NOTHING to the table except $$$$$$ no ideas, no vision, no breath of fresh air.

Just a desperate bid to BUY their way into relevance rather than think and create. With all their money and all their manpower look at the best they could do with Vista after all those years ... it's a disgrace

russellb

Fresh-Faced Recruit

Joined: Sep 2001

0

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