Microsoft Bids for Yahoo
Last Friday, February 1, 2008, Microsoft offered Yahoo an incredible buy-out opportunity. Microsoft threw on the table a $44.6 billion deal, where they agreed to pay Yahoo $31 per share over the current price of $28.95. This deal seemed far too nice, as it was more than 62% of what Yahoo was worth at the time. Many analysts were unsure as to whether or not Yahoo would accept the deal, due to anti-trust issues, and the yearning for independence. However, all that changed yesterday when word leaked on the Internet that come Monday, Yahoo will reject the bid.
Now Microsoft isn’t known for being the type of company that gives up easily so I doubt this minor rejection will set back their spirits one bit. From a company standpoint, it doesn’t seem like a smart move on Yahoo’s part due to the fact that they’ve been declining for more than four quarters. However, from a consumer’s standpoint, it’s certainly refreshing to see that not everyone is looking for an easy way out. If Microsoft and Yahoo were to merge, then that would limit the consumer even more. There is already very few choices out there for operating systems and search engines and to combine these two monoliths together could result in an ugly uniformity no one is ready for.
This story most certainly carries an impact news value. This would-be-take-over can potentially affect millions of individuals.
You can check this story out on all major news networks, but MSNBC seems to have the nicest layout. Link below:
http://www.msnbc.msn.com/id/23084127/
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In addition to impact, it has prominence (both companies are well known) and proximity (one is local; the other has local offices). It also has conflict, since Yahoo doesn't want to be taken over.
B-
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