We’ve got multiple sources at both Yahoo and Microsoft telling us that official talks are back on between the two companies. But we’re hearing something different than CNET - the talks are about a full buyout again, not a sweetened search-only deal.
The information we have is thin, but what one source is saying that Microsoft is talking a price lower than the $33 they were offering when the talks disintegrated in May. Given Yahoo’s recent share price (it’s below $21 today), and the fact that just about everyone other than their board and top execs are publicly screaming for a deal, I’m not surprised.
Microsoft official comment is “no comment,” which actually contains more information than it appears to. For well over a month, Microsoft has officially been saying they’re no longer interested in Yahoo. They didn’t say that today.
Update (11:44 am PST): Additional sources say the Yahoo board offered to sell to Microsoft for the “low $30s per share, and below Microsoft’s original offer” immediately before they signed the Google search deal.
Update (11:47 am PST): From CNBC:
As mentioned at 13:29, CNBC commentator said that a source very close to Microsoft (MSFT), who is ‘in the know’ about negotiations between the two, empathically said there is no deal for the all of YHOO and nothing has changed as of today. Notes that discussions between the two about YHOO’s search business has always been on the table. Reiterates that no deal on the table for the whole co.
What we’ve heard is that the two sides are in current discussions over a complete buyout, not necessarily that there’s a deal in place or even that Microsoft has made any kind of firm offer. Another source at Microsoft reiterates to us that they’re a buyer at the right price, but isn’t saying what that price is.
I hope this gets done.
oh ya baby
//g
This is getting ridiculous… either get married or breakup, but all these booty calls and arguments are getting pretty old.
Damn! So, Jerry doesn’t listen to anything below $37 and now ballmer got him begging for something below $33?
and ppl say ballmer lost the bid? How?
Mike,
Great reporting. I’m assuming this is news you were hinting at on your comment to Dhaval’s comment (31) on your “Modeling The Real Market Value Of Social Networks “article?
If this finally turns out to be a complete buyout, Microsoft did absolutely everything perfectly. I love it.
Seriously, gotta pity Yang! He is being forced to do something he pretty clearly doesn’t want. Not only that he is having to eat his words and having to go back to MS having lost heck of a lot of bargaining chip that yahoo initially had.
Even if Microsoft and Yahoo do become one, i don’t think they will have anything for the 800 pound gorilla that is Google. Yahoo + Microsoft equal a chimp compared to Google.
Mike, good job for breaking the news!!!
I don’t pity Yang. He messed up pretty badly for his company and his investors. It’s not his baby anymore, it’s the baby of thousands of people, and he did wrong by them.
Your so called “breaking story” is a total joke. In case you can’t hear..”MSFT IS NOT GOING TO BUY YAHOO.” Thanks for manipulating the market to allow guys out of the name.
WOW - stock price already popped!
I was about to buy - refreshed and the stock is up 5%.
@Don:
I think from the price perspective MSFT may have done the right thing. But overall MSFT could have done a better job of managing this take over after that initial $31 offer. If they could have reached a more amicable deal even at $35 - it would have given the merger a greater probability of succeeding! Now we will have to wait and see.
So it is too early to say ‘MSFT did absolutely everything perfectly’!
What about the poison pill that Yang implemented though?
Hi all,
I’m from Chile and I impressed with Techcrunch influence on web industry. As soon as Techcrunch published Yahoo/Microsoft posy, Yahoo shares rose as much as 9.00% reversing earlier declines.
Regards,
Thales (www.gaaper.com)
i heard the deal is now down from $33/share to 33 cases of zunes, an xbox, and a copy of guitar hero
I say dump Microsoft, Yahoo is very comfortable in the #2 spot and MS is a distant third. Together they will never beat Google, it’s an unsatisfying wet dream that Ballmer keeps having. Microsoft needs to focus on doing their basic things like Windows and Office better rather than spread themselves too thin and end up doing a lot of them poorly, Zune, IE, MSN, Live Search etc. etc. etc. If anything it shows how poorly MS is, how they can’t innovate, only buy more market share.
Y! will continue to surprise the world… (what else?!)
I’ve had the pleasure of meeting Mr. Icahn and have studied his career extensively. Even if these talks don’t yield a deal, there is no doubt in my mind that he will eventually make a deal happen. He is one of the shrewdest deal makers of our time.
Unbelievable, is this ever going to end? Just get together, collaborate, get the job done and get paid - easy simple done!
Looks like Techcrunch could get a visit from the SEC. According to CNBC, their are no talks.. I smell fraud.
I hope ms does not screw up yahoo finance. It one one the best!
I would bet on techcrunch over the idiots at CNBC any day.
many yahoo talents had left, yahoo stock is not doing that well and on the top of that yahoo+google deal is not good for msft so i dont know why msft is interested??????????? may be it is playing game so that more yahooians leave the company in frustration … i think yahoo should just stop talking to msft and focus on other important stuffs.
Wow, so this news that every has known for a week cause yhoo to jump almost 3 bucks. Gotta love BAD REPORTING! Try writing about it when the news first comes out…wow, I hope you guys get fined!
Discussing on FriendFeed here: http://friendfeed.com/e/356f39.....MSFT-YHOO/
Here we go again and again and … Again.
Microsoft should buy Google and end all stories.
I don’t understand why everyone is calling this bad reporting. If this was a major media site saying this and not a blog no one would be calling this bad reporting. On top of that Mike is much closer then to tech people then any business reporter. Business reporters from major media sites are wrong about stuff all the time. If Michael confirmed from sources both at Yahoo and MSFT then its not bad reporting.
Wow! Yahoo will be a nice farewell gift to Bill G.
This deal is going to happen. Jerry Yang is out of options, out of a management team, and out of time. He doesn’t want to get ousted by the board. He would rather give up Yahoo than be ousted! This deal is going down …. no way it could fall through again… http://www.readtheanswer.com/index.php?RTA=web2
I believe it. Steve Ballmer is relentless.
I wait for the moment I implement Adsensentrepanama clicks
holy crap this debacle has been crafted for maximum pain, but i must say it has given TC a new lease on life
I have a feeling Jerry is gone no matter what happens.
new deal price = 33 - cost of poison pill
So in essence what is happening is that ’sources’ now contact high profile news and blog sources like: WSJ, CNet and Techcrunch when there is a ‘leak’ that could possibly help their stock prices climb.
There so called sources are obviously the PR departments with the nod of the Executives.
These are only short term, band aid approaches that will only help the stock prices for one day - the real solution lies in getting a good product out that will make consumers WANT to visit and use you.
shorts do it all the time….longs should then
How nice of Microsoft to buy Yahoo as a going away present for Mr. Gates???
you’ve got a couple sources? you got beat on this one buddy, don’t make it sound like you’re kir is in the kos.
Shorter Arrington: “I just came in my mouth a little.”
This makes perfect sense, since according to Arrington, Yahoo has almost no employees left, thus the hastily adopted Serverance Plan no longer makes a difference to Microsoft.
Herb Kohl and his congressional committee will have absolutely nothing to say on the antitrust aspects of A MICROSOFT DEAL of course, since his buddy Carl Icahn has Kohl in his pocket.
The Deal Will Happen. NoBody Can Stop It (excluding Arrington).
I will believe this when I see it.
I hope Yahoo is a lot smarter now. I’m just pissed off at Jerry Yang for his incompetence.
I hope this goes through because I bought quite a bit of Yahoo stocks when they were on a dip. My prediction was right. Microsoft needs Yahoo to compete with Google or else they will fall faster behind.
Yay for competition!
you have lot of sources Michael.
This is good for webpreneurs, getting options between Microsoft/Yahoo and Google for contextual ads for website. No google monopoly.
Bring it on.
Emil
Complete agree with MobileRoar. Seriously. Let’s get this thing done with finally.
If the two would merge, I wonder who’s apps would still get used? Live mail or Yahoo Mail? The Yahoo Search Algorithm or the Live Search Algorithm? Yahoo Messenger or Live Messenger?
I really do wonder what will happen to market share. Not having used either Live Mail or Yahoo Mail services in years, would the winning service cause people to want to switch to Gmail, for example? Could this merger really hurt Microsoft’s market share because they just can’t compare to Google?
Why is yahoo better with microsoft than going alone? I don’t really see how ms will make much of a difference in search that yahoo couldn’t do by itself.
TC says they are talking about a total deal…all CNBC says is that there is no done deal…DUH