$44.6 Billion?

	February 11, 2008
Your Update from the Directory for IT Newsletters	145,119 Subscribers
$44.6 Billion? Microsoft and Yahoo made news headlines again this week. On Friday, Microsoft made Yahoo a takeover bid of $44.6 billion. Yahoo declined today stating the offer “substantially undervalues” the company’s worth. Yes, that is right – they rejected $44.6 billion! This is an interesting response when you take into account Yahoo stocks have been on a downhill slide since the fall of 2007, a layoff of 1000 employees by mid-February was recently announced and Yahoo recorded returns of -32% over the last 12 months. Without a competitive offer in the picture I would think Yahoo shareholders are scratching their heads- especially given that Microsoft was offering a 67% premium over the share price? It is early and a lot of things can happen. Yahoo has taken a bold stance because if Microsoft walks away again it could cause Yahoo stocks values to drop even further.  A hostile takeover is possible, but Yahoo has a "poison pill" to thwart that action. A poison pill is a defense posture whereby potential purchasers can be scared off by giving the target company’s Board the power to trigger nasty side effects. In Yahoo's case, in March of 2001, they adopted a "stockholder rights plan" under which if anyone buys 15 percent or more of its stock, the shareholders have the right to buy extra shares. This has the effect of not only diluting the shares but making a hostile takeover much more expensive. Hmmm…I see lawsuits on the horizon. A successful sale would be beneficial to both parties. Together they would be a powerful force against Google as a Web search engine, for search advertising and Web based applications. Strategically I think Microsoft once again has the upper hand and a deal will be sealed in the next few months. Deb Alloway Editor   Subscribe Archives TechNewsletters Advertise Acronis Disk Director Suite 10.0 Comprehensive disk management suite   Click Here File Recover Recover critically important files that have been accidentally deleted. Click Here PC Tools AntiVirus Provides world-leading protection against viruses, worms and Trojans with rapid updates and OnGuard™ technology. Click Here 10 Million Page Views Monthly and still growing. FeedSweep.com
Take a Pro Tour Project Professional 2007 Microsoft Office Project 2007 offers the right blend of usability, power, and flexibility to provide robust, easy-to-use project management tool that enables project managers to manage their projects efficiently and effectively. Test drive Project Professional 2007 today.   Geographic Eligibility: USA    Do you know where to focus your security efforts? Learn the criteria to determine the right Secure Web Gateway for your organization. Request Your Free Podcast
Major Publishers Cert Mag CERTguide CertTimes CIO Magazine Computerworld   ProgramFiles iEntry Internet World InternetVIZ iSeries Network ISPworld.com ITtoolbox ITworld SiteProNews SunBelt Software Support Alert TechTarget ITproPortal VertMarkets IT Windows ITpro Windows Guide WUGNET ZATZ Publishing
Your subscribed e-mail address is khari.amit.news@blogger.com Click here to be removed from this list. Please be advised that this may restrict your ability to use the TechNewsletters.com website. We endeavor to maintain the highest standards of professionalism and corporate responsibility, and appreciate any comments from our customers. If you have further questions or concerns, contact us at www.toolbuttoninc.com/contact.aspx.