Microsoft May Cancel Yahoo Bid: Rumors
Duncan Riley
43 comments »
Yahoo shares plunged by upto 5% in after market trading this afternoon on rumors that Microsoft may be ready to quit its takeover offer for Yahoo.
From Reuters:
Microsoft Corp is evaluating its bid for Yahoo Inc because the Internet company may have lost value since it made its offer, a person familiar with the matter said on Friday.
Microsoft has been repeatedly trying to engage Yahoo’s board in discussions, the person said. But the market has deteriorated and changes in Yahoo’s business may have dragged down its value below what it was when Microsoft made its bid, the person said.
Could Yahoo have missed its once in a life-time exit, or is this simply a negotiating tactic with Microsoft trying to force Yahoo’s hand?
Microsoft stock traded up just shy of 1% on the news in late trading.





seems like a move to force their hand and make it clear there is no more money in the pot for it.
Let the piece of trash yahoo die. I never click on their ads — NEVER.
deal will go on… too costly for MSFT to not do it.
if this happens, jerry is toast, sue is toast, blake is toast, they will all end up getting tossed by shareholders who have no desire to see shares go back into the teens
This is obviously a rumor MSN wants Yahoo to think is true. I seriously doubt that it’s true.
MS should lower it’s bid by $1B every week and see what happens.
hahahahahahahah <— Laughing in English
jajajajajajajajajaja <— Lauging in Spanish
bababababababab <— Laughing in SHEEP
They are going to get their butts sued by their shareholders.
“Could Yahoo have missed its once in a life-time exit, or is this simply a negotiating tactic with Microsoft trying to force Yahoo’s hand?”
Microsoft is being manipulative. They’re trying to destabilize Yahoo further.
the market has deteriorated and changes in Yahoo’s business - ?
The market has not deteriorated since Feb 1st, it is actually getting better, many stocks have came back.
What part of Yahoo’s business has changed? the roadshow has affirmed the 1st quarter goal, and according to SAI, yahoo’s business may actually getting better.
In other words, MSFT tries to steal yahoo when market was at lowest point, now things changed, and yahoo is getting stronger, so MSFT wants to quit gracefully.
just my 2 cents.
Hi Duncan,
I have Microsoft on the other line for you. They want to thank you for spreading rumours which help their negotiating position. Have a nice day.
With all the talk of shareholders suing Yahoo for their right to maximize profit, MS knows full well there’s strife in the camp. This is their way of fueling the fires (in the name of gamesmanship).
“I have Microsoft on the other line for you. They want to thank you for spreading rumours which help their negotiating position. ”
http://www.groklaw.net/comment.....70#c555168
It made me think of this.
Well that’s what happen when you take you’re too good for the internet. Or maybe MSFT is playing a game with to make them fall for their offer. Let’s see.
http://www.givemebeats.com
Yahoo is going to seriously regret not taking the Microsoft bid in a year or so when its stock price falls because of lost business to Google.
http://www.collegemogul.com
Yahoo could survive on its own…
but it won’t dominate again.
I have to buck the trend here and say this might be legitimate. Microsoft has lost a lot of value here already.
People fixate on Yahoo’s rise since this deal was announced but you have to remember that Microsoft has been losing value this entire time. So you have dual deterrents here in that Yahoo wants more money while at the same time Microsoft is losing money for having made the offer in the first place.
Beyond that you have star employees and customers deserting Yahoo left and right simply because they don’t want to be part of the whole debacle. Had this deal closed quickly Microsoft would have gotten the chance to entice these people to stay but a long, drawn out merger negotiation has given them the chance to cut and run before Microsoft even gets in there.
Oh, and lets not forget Yahoo’s management who seems determined to sabotage the deal at every turn. This may well be a tactic on Microsoft’s part but regardless of that there’s no doubt that the goal of acquiring Yahoo has lost value for Microsoft over the past month or so.
Read any techmeme today Duncan?
This is not just believable. I was personally surprised that Microsoft even contemplated the rise in the offer. This may all be a game plan.
Look at it this way. Yahoo has done the rounds and EVERYONE rejected it.
Microsoft pulls out, and has great reasons to do so now with the shape of the market.. And where does that leave Yahoo??
One would expect its price to half in the next 6 months if Microsoft pulls.
If Microsoft is not in a hurry… Sounds like a great move.
James
Microsoft should just wait till yahoo bombs and then scoup them up at a fire sale price. Then Microsoft should buy the Gigablast search engine for a couple of mil and they would be number 1 .
Yahoo portal would get them the audience share, whilst the Gigablast search engine would provide the quality in search results people want.
I would too. Yahoo clearly don’t understand the concept of 100% of nothing.
Would Microsoft just “get a grip”. I’ve already moved some of my Yahoo services to Google just to be prepared.
If M/S buys Yahoo, they’ll be a mass exodus from Yahoo the likes of which the net has never seen. No netizen with any smarts will stay with Yahoo and let their personal data be used by Microsoft to spam us into their lousy web services and off-the-shelf products.
I’m no Anti-Microsoftie (as evidenced in my blog), but the very idea that they think they can buy a web-only company like Yahoo and do ANYTHING beneficial for us, them, or Yahoo itself, has got to be THE joke of 2008.
Would you buy a Microsoft car? Would you buy a Microsoft high-rise? I think we’ll all wait for them to figure out their own products, but have issues (like Vista, Office, and their nutty table touch screen). They must be clueless. Who, exactly who, on the internet is pushing the idea of this (besides some toadie spec investors (who are also clueless)). Everyone I’ve read ranges from wary to downright outraged at the idea.
If they buy Yahoo, they’ll be left holding a shell of freebie Yahoo dial-up users by the end of 2009. And Google will be reaping all the benefits.
I hope they do cancel the bid.
I would like to know what all the hostility is all about. Yahoo has always had more traffic than any other site. This is like the Michael Jackson of the 1980’s. He sells millions of albums but you cannot find one person that will admit to liking him back then. Just like now when everyone uses Yahoo but no one will admit it. Other than search, their traffic dwarfs Google. Yahoo has so many more things to do than Google does despite the fact that no one will admit it. It is this reason that I go out of my way to not use Google because there are so many followers that cannot even see straight. The only reason Yahoo suffers is because of this followership that people in the tech community participate in. You have Digg, Twit, slash dot, and sites like this all say the same thing. Google is god, Apple is god, Linux rocks, Firefox is the best, and Microsoft is the devil. Other than Google dominating search, all of these go contrary to the numbers of people using them. Firefox is only about 10 to 15%, Apple is less than that, Linux is even less. Everyone bashes Microsoft but 90% of the people use their products. If you want to have some sense of quality, ignore anyone who talks about tech all day because it is group speak. I have found that if you watch what people do rather than listen to what they say, you will be much better off.
Microsoft is finally waking up. Now maybe they should focus more on their Google competitor by getting into bed with eBay and making an offer for Skype before Google does.
I hope the deal gets canceled and Yahoo tanks. I hate greedy shareholders.
Paul is absolutely right. Google PR is in fast forwards trying to make out that people would leave yahoo if microsoft bought it.
Nonsense, Yahoo as a portal will always dominate the net , people prefer a onestop hub that traversing all over the Net for all their stuff. Only if yahoo could get their search product right and the would own the net.
about time… MS would be doing everyone else a favor for rejecting the bid. at first i was very much into them to getting yahoo to help it grow, but now that i see crazy fanbois defend yahoo from “evil” ive changed my mind. hope you guys have a fun fall to nothingness…
geez, i dont understand these people. and if you guys want to transfer to google, have fun with the bigger devil! wherein they know you’re entire lives and data…
and oh paul, i totally agree with you.
@21 … with customers like you, who needs Microsoft
Good for both to run their business separately.
http://feedshub.blogspot.com
I also concur with Paul. Techies are disillusioned in that they believe they represent the majority.
Yahoo! doesn’t pull in Google-like $, but they are still a highly profitable company.
Certainly more profitable than any of the tech flavors-of-month that never make a dime and likely never will.
@Wade: Greedy shareholders are the reason MS and Y! stocks are down in the first place. They both make a lot of money, but wall st. and techies are too busy hopping on bandwagons.
There has been quite a number of news stories in the past quarter, many originated by Yahoo. The ‘right amount of resistance’ I would interpret as part of the bargaining ritual. Industry consolidation is so much in vogue and with esurient shareholders abound I still feel this one will close in Microsoft’s ‘favour’.
yahoo sux
Now I finally understand why Yahoo fell behind. Facts of life.
Redmond will simply pull it’s deal and start buying the stock at a much lower price, they will become the majority shareholders and get what they want anyway without overpaying which is what the would be doing now.
Personally I think its better for both companies if the merger doesn’t go through. Microsoft would’ve wasted all its energy and time on integrated, merging or dissolving various overlapping properties that Yahoo and Microsoft have. If the merge does go through it will be AOL- Time Warner all over again.
The deal only appeals to douchebag Wall Street types who don’t get tech and for some reason steve balmer(who also isn’t a engineer). A great way to throw away your engineering talent is to make them all integrate different properties that do the same thing.
Congratulations to techcrunch for adding the word “rumors” in the title. Sometimes we read catchy headers but vacuum content. It´s nice to see ethical behaviour in journalism.