Yahoo is clearly a wounded search engine, haemorrhaging blood and desperately in need of some attention. Microsoft on the other hand, is not doing too badly as the world’s largest software company. It seems only natural, therefore, that a company like Microsoft would be first in line looking to help Yahoo.
According to reports, Microsoft is heading up a consortium that will see it taking a minority stake in Yahoo (around 15%). This is good news of coursed, but rather ironic giving the past failure of Microsoft to get a slice of the Yahoo ownership pie. It was only a few years ago that Microsoft approached Yahoo and proposed a buy-out deal that valued Yahoo at around $49 billion.
It seems now that Microsoft is willing to overlook the rejection in the interest of protecting its share of the search market—after all, what would the landscape be like if Google acquires even 10% of Yahoo?
The current offer put on the table values Yahoo at a paltry $20.6 billion—a figure which quite obviously shows the true state that Yahoo is in. in other words, Yahoo needs a buyer, even if the owners of the struggling search engine company isn’t too keen on selling. Of course, it will be interesting to see how Google responds. We mustn’t forget that it too, was interested (even recently) in buying some stake in Yahoo.
Do you think Microsoft buying a stake in Yahoo is a wise move? Share your views below
Source: http://www.sitetrail.com/2011/12/05/microsoft-to-buy-15-stake-in-yahoo/
According to reports, Microsoft is heading up a consortium that will see it taking a minority stake in Yahoo (around 15%). This is good news of coursed, but rather ironic giving the past failure of Microsoft to get a slice of the Yahoo ownership pie. It was only a few years ago that Microsoft approached Yahoo and proposed a buy-out deal that valued Yahoo at around $49 billion.It seems now that Microsoft is willing to overlook the rejection in the interest of protecting its share of the search market—after all, what would the landscape be like if Google acquires even 10% of Yahoo?
The current offer put on the table values Yahoo at a paltry $20.6 billion—a figure which quite obviously shows the true state that Yahoo is in. in other words, Yahoo needs a buyer, even if the owners of the struggling search engine company isn’t too keen on selling. Of course, it will be interesting to see how Google responds. We mustn’t forget that it too, was interested (even recently) in buying some stake in Yahoo.
Do you think Microsoft buying a stake in Yahoo is a wise move? Share your views below
Source: http://www.sitetrail.com/2011/12/05/microsoft-to-buy-15-stake-in-yahoo/