Yahoo shareholders want more from Microsoft

By Justin Mann on February 12, 2008, 5:16 PM
After Microsoft's $44.6 Billion bid for Yahoo was rejected by the floundering search company, many speculated that it was a ploy to increase the bid. That assumption may have quite a bit of merit to it with a large shareholder in Yahoo saying exactly that.

The second-largest shareholder of Yahoo stock is saying that Microsoft might have valid points and that a partnership of this sort may be in the best interest of Yahoo, but that MS will have to cough up more dough before it is worth their while. Will Microsoft bite at that? If they are truly set on taking down Google, they might not have much of a choice.

User Comments: 2

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9Nails said:
$44 Billion dollars is a lot of dough! I'm not sure which exec's at Yahoo need to have a bigger severance package when they're bought out, but the deal is pretty sugary sweet as it is. I'm quite certain that for $44 Billion, Microsoft could easily build an identical empire as to Yahoo, and probably improve upon it in the process. I also seriously doubt that Yahoo has 44 Billion in assets and that Microsoft's offer may be too generous. Yahoo is hemorrhaging out cash since Google because the search giant, they only stand to gain in this deal.
icye said:
Microsoft needs to assimilate Yahoo! in a last ditch effort to stay relevant in the online search market against Google. Even if they throw $44 billion in a new MSN, it still not enough to beat Google. If there is no competition, things get stagnant which is true with online search engines these days. Even a new Microsoft search engine using Yahoo!'s intellectual property could pose a challenge that will keep Google on their toes to make their online search engine better. At the end of the day, the simplicity and impressive search results coming from using Google will keep them well ahead of the others unless Google management buggers up.
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