Wednesday, February 6th 2008

Microsoft May Need Additional Funds to Purchase Yahoo; Yahoo Still Negotiating

Here's your update to the whole Microsoft-Yahoo situation: Microsoft may actually not have enough money on them to buy Yahoo outright. Or, even if they do, they somehow see a need to borrow a fair size of money to do this. The reason Microsoft sees the need to borrow money is the current state of negotiations. Yahoo, if they agree to be acquired, wants half the funds as a stock buy-out and half as cash. While Microsoft has $21 billion to spend on such a venture, Yahoo requires about $23 billion, and Microsoft doesn't feel like depleting the whole bank over a business deal.

However, while Microsoft works out loan terms, Microsoft may not need the money after all. Yahoo is seriously considering turning down the offer. Even if they accept any offer to be bought out, Yahoo has stated that they're more likely to accept an offer from Google...

We'll keep you posted as this whole debacle unfolds.Source: DailyTech
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8 Comments on Microsoft May Need Additional Funds to Purchase Yahoo; Yahoo Still Negotiating

#1
Ravenas
zekrahminator said:
Here's your update to the whole Microsoft-Yahoo situation: Microsoft may actually not have enough money on them to buy Yahoo outright. Or, even if they do, they somehow see a need to borrow a fair size of money to do this. The reason Microsoft sees the need to borrow money is the current state of negotiations. Yahoo, if they agree to be acquired, wants half the funds as a stock buy-out and half as cash. While Microsoft has $21 billion to spend on such a venture, Yahoo requires about $23 billion, and Microsoft doesn't feel like depleting the whole bank over a business deal.

However, while Microsoft works out loan terms, Microsoft may not need the money after all. Yahoo is seriously considering turning down the offer. Even if they accept any offer to be bought out, Yahoo has stated that they're more likely to accept an offer from Google...

We'll keep you posted as this whole debacle unfolds.

Source: DailyTech
This is not going to happen because Google is now stepping in to help Yahoo block off MS, and Apple is now offering a higher price for the firm. This deal is going no where fast.
Posted on Reply
#2
panchoman
Sold my stars!
more likely to accept an offer from google... yay! if anyones getting yahoo.. it should be google ... M$ would completely fuck up yahoo. too bad google doesn't wanna take em.. even though they could..
Posted on Reply
#3
Scrizz
i use to like yahoo, until I got hundreds of spam in my inbox
Posted on Reply
#4
Conti027
only 23 billion! man im buying Yahoo
Posted on Reply
#5
antonio
Maybe they didn´t learned with AMD/ATI merge...and commit same error.
What next ? Undred of employes cuted off...Rizing prices to pay for merge...Man we are testiffiyng again the reborn off Monopolyes , precicely what our father´s fygthed against...the reborn off economic ditater´s.
Now is missing INTEL/Nvidia ???.:wtf:
Posted on Reply
#6
JoJoe
I think that Google buying Yahoo would be just as bad, if not worse, than Microsoft buying Yahoo...

And as to this matter of needing a loan to buy Yahoo... They should just ask Bill Gates for some money.
Posted on Reply
#7
thoughtdisorder
Either way, would be a great time to own stock in Yahoo! I'm not sure M$ will allow this battle to be lost in the long run. This happened back in May of 2007 when M$ leaked the same rumour to the New York Times, exclusively. At that time they accused Google of Anti-competitive behavior. Wow, if that isn't the pot calling the kettle black I don't know what is! Either way, at that time Yahoo's stock shot up 18%, and no one complained. Btw, at that time they were valuing Yahoo's worth at $50 billion. Things that make you say hmmmm. In the end, I would not be surprised in the least if M$ initiated a hostile takeover attempt, but that is pure conjecture on my part.


Source: TechCrunch (2007)
Posted on Reply
#8
thoughtdisorder
antonio said:
Maybe they didn´t learned with AMD/ATI merge...and commit same error.
What next ? Undred of employes cuted off...Rizing prices to pay for merge...Man we are testiffiyng again the reborn off Monopolyes , precicely what our father´s fygthed against...the reborn off economic ditater´s.
Now is missing INTEL/Nvidia ???.:wtf:
Dude, wtf? :wtf:
Posted on Reply