Yahoo says no to Microsoft
Yahoo says no to Microsoft.
Over the weekends Yahoo board headed by Jerry Young discussed the proposed take over by Microsoft for $45 billion at 31$ per share and declined the offer. Times UK reports that Yahoo raised its price by $12 billion at $40 per share.
It also mentions that Yahoo is in talks with AOL for some kind of partnership, where Google holds 5% stake.
Yahoo experienced an eight quarter decline in profits, largely loosing customer base to Google. As Google continues to dominate search, Microsoft sees it as a threat to its future, with only one solution – Yahoo.
Jerry Young(CEO) and Yahoo board might be playing on that fear in hopes of getting more money out of the deal, as microsoft went for a bargain, giving the 5 year low price.
It is not yet clear what partnership Yahoo is hoping to get with Time Warner(AOL).
San Francisco Chronicle talks about Yahoo outsourcing its advertising to Google, while 2 companies split the revenues. Outsourcing advertising with would allow Yahoo to cut costs, increasing its share value.
Though this would save Yahoo! From Microsoft, it would become dependant on Google, which already owns more then 60% of world wide search market. Also antitrust would burst into reaction, as it did with proposed doubleclick deal, which barely competes with Google.
With rejected Microsoft offer Jerry Young now must convince the board he is capable of raising Yahoo! stocks to at least $30 per share, as Yahoo`s future does not look to bright at the moment.
