Two weeks after walking away from takeover talks with Yahoo, Microsoft has made it clear that it still needs to create an Internet powerhouse that could rival Google — and that its interest in Yahoo has not waned.
Times Topics: Microsoft-Yahoo DealMicrosoft said on Sunday that it had approached Yahoo, this time with an ostensibly narrower aim: a collaboration on Internet advertising. But it hinted that it could still seek a takeover down the road.
The renewed talks reflect both Microsoft’s fears and Yahoo’s potential ills. Microsoft wants to head off any collaboration on advertising between Yahoo and the market leader, Google. At the same time, Microsoft is seeking to capitalize on the perceived weakness of Yahoo, which is facing a proxy battle with the activist investor Carl C. Icahn over the failed takeover talks.
Mr. Icahn, who has made a career out of agitating for change at some of the nation’s largest companies, bought a stake in Yahoo after the Microsoft takeover negotiations collapsed. He has named a slate of directors and threatened to unseat Yahoo’s management — or at least push Yahoo back into Microsoft’s arms.
On Monday morning, the report of Microsoft’s renewed interest in Yahoo had only a mild effect on the two companies’ stocks. In early trading, Yahoo was at $27.98, up 32 cents, and Microsoft was at $29.69, off 30 cents.
Microsoft released a brief statement on Sunday disclosing the renewed talks, a surprising reversal just weeks after it withdrew its $47.5 billion bid for Yahoo and said it had “moved on.”
In an e-mail message to Microsoft employees on Sunday afternoon, a senior Microsoft executive seemed to acknowledge that moving on might be difficult.
In his memo, Kevin Johnson, the executive in charge of Microsoft’s Internet business, emphasized the urgency felt at Microsoft about its failure to make more progress in catching up to Google.
“Regardless of the outcome of any new discussions,” he wrote, “it is important that we continue to move forward to strengthen our online services business. The fact is that we are not where we want to be in this business yet and we’ve been in this position longer than we’d all like.”
Mr. Johnson then outlined Microsoft’s ambitious agenda in Internet search and online advertising, exploiting the company’s strengths in desktop software and newer fields like cellphone software. Among the goals enumerated in the memo are to “innovate and disrupt in search,” “win in display” ads online and “reinvent portal and social media experiences.”
Microsoft’s hastily revived effort to reach some kind of deal with Yahoo seems to suggest that the software giant has doubts about whether it can achieve those goals on its own.
Indeed, Microsoft’s on-again, off-again interest in Yahoo has raised questions from analysts, investors, customers and employees about its strategy. Amid the discussions, Microsoft is scheduled to present its online strategy to advertisers at a gathering this week.
People involved in the confidential discussions between Microsoft and Yahoo said the talks centered on a partnership or joint venture for search-related advertising to compete against Google. When Microsoft first made its unsolicited bid of $31 a share for Yahoo in February, it said it was doing so as part of its battle to increase its relatively small slice of the search-related advertising market against Google, a giant with about 60 percent of the United States market, according to the measurement firm comScore.
By comparison, Yahoo has about 21 percent of the market, and Microsoft has about 9 percent, comScore said.
The timing of Microsoft’s new approach may be a turning point in the months-long story or just an opportunistic effort to further insert itself into a dance between Yahoo and Google. Yahoo has been racing to complete its own partnership with Google and was expected to announce a formal agreement as early as this week. A Yahoo-Google partnership, which would likely face antitrust scrutiny, could make Yahoo a less desirable partner or takeover candidate for Microsoft.
The Google-Yahoo discussions have been centered around the notion of Google delivering ads alongside some Yahoo searches. Such a deal would help Yahoo generate more cash, because Google’s search advertising technology is more sophisticated and is used by more advertisers. As a result, Google earns more on every search than its competitors, on average.
A similar partnership between Yahoo and Microsoft might not have the same effect, because Microsoft’s base of advertisers is smaller than Yahoo’s. People involved in the confidential discussions said that search advertising was certainly a part of Microsoft’s renewed interest in Yahoo, but they cautioned that any relationship being discussed might be different from the one the company had been contemplating with Google.
A Google representative did not return a phone call seeking comment.
It is unclear whether Microsoft would pursue a takeover bid again. In its statement on Sunday, Microsoft insisted it was not making such a bid, but hinted that it could be persuaded to reverse course.
“Microsoft is not proposing to make a new bid to acquire all of Yahoo at this time, but reserves the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo or discussions with shareholders of Yahoo or Microsoft or with other third parties,” the company said.
The new discussions also come as Yahoo is facing increasing pressure from shareholders, some of whom are furious that its board did not work harder to reach a deal to sell the company to Microsoft. Last week, Mr. Icahn said the directors had “acted irrationally and lost the faith of shareholders.” People close to Microsoft and Mr. Icahn say that neither has been in contact with the other.
Yahoo released a statement late on Sunday saying that it continues to explore strategic alternatives and remains open to any proposals that are good for its shareholders.
“Yahoo’s board of directors will evaluate each of our alternatives, including any Microsoft proposal, consistent with its fiduciary duties, with a focus on maximizing stockholder value,” the statement said. Yahoo also said that it had confirmed with Microsoft that the software giant was not interested an outright acquisition of Yahoo at this time.
Monday, May 19, 2008
Pursuit of Yahoo Shows Microsoft Needs a Franchise
Two weeks after walking away from takeover talks with Yahoo, Microsoft has made it clear that it still needs to create an Internet powerhouse that could rival Google — and that its interest in Yahoo has not waned.
Times Topics: Microsoft-Yahoo DealMicrosoft said on Sunday that it had approached Yahoo, this time with an ostensibly narrower aim: a collaboration on Internet advertising. But it hinted that it could still seek a takeover down the road.
The renewed talks reflect both Microsoft’s fears and Yahoo’s potential ills. Microsoft wants to head off any collaboration on advertising between Yahoo and the market leader, Google. At the same time, Microsoft is seeking to capitalize on the perceived weakness of Yahoo, which is facing a proxy battle with the activist investor Carl C. Icahn over the failed takeover talks.
Mr. Icahn, who has made a career out of agitating for change at some of the nation’s largest companies, bought a stake in Yahoo after the Microsoft takeover negotiations collapsed. He has named a slate of directors and threatened to unseat Yahoo’s management — or at least push Yahoo back into Microsoft’s arms.
On Monday morning, the report of Microsoft’s renewed interest in Yahoo had only a mild effect on the two companies’ stocks. In early trading, Yahoo was at $27.98, up 32 cents, and Microsoft was at $29.69, off 30 cents.
Microsoft released a brief statement on Sunday disclosing the renewed talks, a surprising reversal just weeks after it withdrew its $47.5 billion bid for Yahoo and said it had “moved on.”
In an e-mail message to Microsoft employees on Sunday afternoon, a senior Microsoft executive seemed to acknowledge that moving on might be difficult.
In his memo, Kevin Johnson, the executive in charge of Microsoft’s Internet business, emphasized the urgency felt at Microsoft about its failure to make more progress in catching up to Google.
“Regardless of the outcome of any new discussions,” he wrote, “it is important that we continue to move forward to strengthen our online services business. The fact is that we are not where we want to be in this business yet and we’ve been in this position longer than we’d all like.”
Mr. Johnson then outlined Microsoft’s ambitious agenda in Internet search and online advertising, exploiting the company’s strengths in desktop software and newer fields like cellphone software. Among the goals enumerated in the memo are to “innovate and disrupt in search,” “win in display” ads online and “reinvent portal and social media experiences.”
Microsoft’s hastily revived effort to reach some kind of deal with Yahoo seems to suggest that the software giant has doubts about whether it can achieve those goals on its own.
Indeed, Microsoft’s on-again, off-again interest in Yahoo has raised questions from analysts, investors, customers and employees about its strategy. Amid the discussions, Microsoft is scheduled to present its online strategy to advertisers at a gathering this week.
People involved in the confidential discussions between Microsoft and Yahoo said the talks centered on a partnership or joint venture for search-related advertising to compete against Google. When Microsoft first made its unsolicited bid of $31 a share for Yahoo in February, it said it was doing so as part of its battle to increase its relatively small slice of the search-related advertising market against Google, a giant with about 60 percent of the United States market, according to the measurement firm comScore.
By comparison, Yahoo has about 21 percent of the market, and Microsoft has about 9 percent, comScore said.
The timing of Microsoft’s new approach may be a turning point in the months-long story or just an opportunistic effort to further insert itself into a dance between Yahoo and Google. Yahoo has been racing to complete its own partnership with Google and was expected to announce a formal agreement as early as this week. A Yahoo-Google partnership, which would likely face antitrust scrutiny, could make Yahoo a less desirable partner or takeover candidate for Microsoft.
The Google-Yahoo discussions have been centered around the notion of Google delivering ads alongside some Yahoo searches. Such a deal would help Yahoo generate more cash, because Google’s search advertising technology is more sophisticated and is used by more advertisers. As a result, Google earns more on every search than its competitors, on average.
A similar partnership between Yahoo and Microsoft might not have the same effect, because Microsoft’s base of advertisers is smaller than Yahoo’s. People involved in the confidential discussions said that search advertising was certainly a part of Microsoft’s renewed interest in Yahoo, but they cautioned that any relationship being discussed might be different from the one the company had been contemplating with Google.
A Google representative did not return a phone call seeking comment.
It is unclear whether Microsoft would pursue a takeover bid again. In its statement on Sunday, Microsoft insisted it was not making such a bid, but hinted that it could be persuaded to reverse course.
“Microsoft is not proposing to make a new bid to acquire all of Yahoo at this time, but reserves the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo or discussions with shareholders of Yahoo or Microsoft or with other third parties,” the company said.
The new discussions also come as Yahoo is facing increasing pressure from shareholders, some of whom are furious that its board did not work harder to reach a deal to sell the company to Microsoft. Last week, Mr. Icahn said the directors had “acted irrationally and lost the faith of shareholders.” People close to Microsoft and Mr. Icahn say that neither has been in contact with the other.
Yahoo released a statement late on Sunday saying that it continues to explore strategic alternatives and remains open to any proposals that are good for its shareholders.
“Yahoo’s board of directors will evaluate each of our alternatives, including any Microsoft proposal, consistent with its fiduciary duties, with a focus on maximizing stockholder value,” the statement said. Yahoo also said that it had confirmed with Microsoft that the software giant was not interested an outright acquisition of Yahoo at this time.
Times Topics: Microsoft-Yahoo DealMicrosoft said on Sunday that it had approached Yahoo, this time with an ostensibly narrower aim: a collaboration on Internet advertising. But it hinted that it could still seek a takeover down the road.
The renewed talks reflect both Microsoft’s fears and Yahoo’s potential ills. Microsoft wants to head off any collaboration on advertising between Yahoo and the market leader, Google. At the same time, Microsoft is seeking to capitalize on the perceived weakness of Yahoo, which is facing a proxy battle with the activist investor Carl C. Icahn over the failed takeover talks.
Mr. Icahn, who has made a career out of agitating for change at some of the nation’s largest companies, bought a stake in Yahoo after the Microsoft takeover negotiations collapsed. He has named a slate of directors and threatened to unseat Yahoo’s management — or at least push Yahoo back into Microsoft’s arms.
On Monday morning, the report of Microsoft’s renewed interest in Yahoo had only a mild effect on the two companies’ stocks. In early trading, Yahoo was at $27.98, up 32 cents, and Microsoft was at $29.69, off 30 cents.
Microsoft released a brief statement on Sunday disclosing the renewed talks, a surprising reversal just weeks after it withdrew its $47.5 billion bid for Yahoo and said it had “moved on.”
In an e-mail message to Microsoft employees on Sunday afternoon, a senior Microsoft executive seemed to acknowledge that moving on might be difficult.
In his memo, Kevin Johnson, the executive in charge of Microsoft’s Internet business, emphasized the urgency felt at Microsoft about its failure to make more progress in catching up to Google.
“Regardless of the outcome of any new discussions,” he wrote, “it is important that we continue to move forward to strengthen our online services business. The fact is that we are not where we want to be in this business yet and we’ve been in this position longer than we’d all like.”
Mr. Johnson then outlined Microsoft’s ambitious agenda in Internet search and online advertising, exploiting the company’s strengths in desktop software and newer fields like cellphone software. Among the goals enumerated in the memo are to “innovate and disrupt in search,” “win in display” ads online and “reinvent portal and social media experiences.”
Microsoft’s hastily revived effort to reach some kind of deal with Yahoo seems to suggest that the software giant has doubts about whether it can achieve those goals on its own.
Indeed, Microsoft’s on-again, off-again interest in Yahoo has raised questions from analysts, investors, customers and employees about its strategy. Amid the discussions, Microsoft is scheduled to present its online strategy to advertisers at a gathering this week.
People involved in the confidential discussions between Microsoft and Yahoo said the talks centered on a partnership or joint venture for search-related advertising to compete against Google. When Microsoft first made its unsolicited bid of $31 a share for Yahoo in February, it said it was doing so as part of its battle to increase its relatively small slice of the search-related advertising market against Google, a giant with about 60 percent of the United States market, according to the measurement firm comScore.
By comparison, Yahoo has about 21 percent of the market, and Microsoft has about 9 percent, comScore said.
The timing of Microsoft’s new approach may be a turning point in the months-long story or just an opportunistic effort to further insert itself into a dance between Yahoo and Google. Yahoo has been racing to complete its own partnership with Google and was expected to announce a formal agreement as early as this week. A Yahoo-Google partnership, which would likely face antitrust scrutiny, could make Yahoo a less desirable partner or takeover candidate for Microsoft.
The Google-Yahoo discussions have been centered around the notion of Google delivering ads alongside some Yahoo searches. Such a deal would help Yahoo generate more cash, because Google’s search advertising technology is more sophisticated and is used by more advertisers. As a result, Google earns more on every search than its competitors, on average.
A similar partnership between Yahoo and Microsoft might not have the same effect, because Microsoft’s base of advertisers is smaller than Yahoo’s. People involved in the confidential discussions said that search advertising was certainly a part of Microsoft’s renewed interest in Yahoo, but they cautioned that any relationship being discussed might be different from the one the company had been contemplating with Google.
A Google representative did not return a phone call seeking comment.
It is unclear whether Microsoft would pursue a takeover bid again. In its statement on Sunday, Microsoft insisted it was not making such a bid, but hinted that it could be persuaded to reverse course.
“Microsoft is not proposing to make a new bid to acquire all of Yahoo at this time, but reserves the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo or discussions with shareholders of Yahoo or Microsoft or with other third parties,” the company said.
The new discussions also come as Yahoo is facing increasing pressure from shareholders, some of whom are furious that its board did not work harder to reach a deal to sell the company to Microsoft. Last week, Mr. Icahn said the directors had “acted irrationally and lost the faith of shareholders.” People close to Microsoft and Mr. Icahn say that neither has been in contact with the other.
Yahoo released a statement late on Sunday saying that it continues to explore strategic alternatives and remains open to any proposals that are good for its shareholders.
“Yahoo’s board of directors will evaluate each of our alternatives, including any Microsoft proposal, consistent with its fiduciary duties, with a focus on maximizing stockholder value,” the statement said. Yahoo also said that it had confirmed with Microsoft that the software giant was not interested an outright acquisition of Yahoo at this time.
Pursuit of Yahoo Shows Microsoft Needs a Franchise
Two weeks after walking away from takeover talks with Yahoo, Microsoft has made it clear that it still needs to create an Internet powerhouse that could rival Google — and that its interest in Yahoo has not waned.
Times Topics: Microsoft-Yahoo DealMicrosoft said on Sunday that it had approached Yahoo, this time with an ostensibly narrower aim: a collaboration on Internet advertising. But it hinted that it could still seek a takeover down the road.
The renewed talks reflect both Microsoft’s fears and Yahoo’s potential ills. Microsoft wants to head off any collaboration on advertising between Yahoo and the market leader, Google. At the same time, Microsoft is seeking to capitalize on the perceived weakness of Yahoo, which is facing a proxy battle with the activist investor Carl C. Icahn over the failed takeover talks.
Mr. Icahn, who has made a career out of agitating for change at some of the nation’s largest companies, bought a stake in Yahoo after the Microsoft takeover negotiations collapsed. He has named a slate of directors and threatened to unseat Yahoo’s management — or at least push Yahoo back into Microsoft’s arms.
On Monday morning, the report of Microsoft’s renewed interest in Yahoo had only a mild effect on the two companies’ stocks. In early trading, Yahoo was at $27.98, up 32 cents, and Microsoft was at $29.69, off 30 cents.
Microsoft released a brief statement on Sunday disclosing the renewed talks, a surprising reversal just weeks after it withdrew its $47.5 billion bid for Yahoo and said it had “moved on.”
In an e-mail message to Microsoft employees on Sunday afternoon, a senior Microsoft executive seemed to acknowledge that moving on might be difficult.
In his memo, Kevin Johnson, the executive in charge of Microsoft’s Internet business, emphasized the urgency felt at Microsoft about its failure to make more progress in catching up to Google.
“Regardless of the outcome of any new discussions,” he wrote, “it is important that we continue to move forward to strengthen our online services business. The fact is that we are not where we want to be in this business yet and we’ve been in this position longer than we’d all like.”
Mr. Johnson then outlined Microsoft’s ambitious agenda in Internet search and online advertising, exploiting the company’s strengths in desktop software and newer fields like cellphone software. Among the goals enumerated in the memo are to “innovate and disrupt in search,” “win in display” ads online and “reinvent portal and social media experiences.”
Microsoft’s hastily revived effort to reach some kind of deal with Yahoo seems to suggest that the software giant has doubts about whether it can achieve those goals on its own.
Indeed, Microsoft’s on-again, off-again interest in Yahoo has raised questions from analysts, investors, customers and employees about its strategy. Amid the discussions, Microsoft is scheduled to present its online strategy to advertisers at a gathering this week.
People involved in the confidential discussions between Microsoft and Yahoo said the talks centered on a partnership or joint venture for search-related advertising to compete against Google. When Microsoft first made its unsolicited bid of $31 a share for Yahoo in February, it said it was doing so as part of its battle to increase its relatively small slice of the search-related advertising market against Google, a giant with about 60 percent of the United States market, according to the measurement firm comScore.
By comparison, Yahoo has about 21 percent of the market, and Microsoft has about 9 percent, comScore said.
The timing of Microsoft’s new approach may be a turning point in the months-long story or just an opportunistic effort to further insert itself into a dance between Yahoo and Google. Yahoo has been racing to complete its own partnership with Google and was expected to announce a formal agreement as early as this week. A Yahoo-Google partnership, which would likely face antitrust scrutiny, could make Yahoo a less desirable partner or takeover candidate for Microsoft.
The Google-Yahoo discussions have been centered around the notion of Google delivering ads alongside some Yahoo searches. Such a deal would help Yahoo generate more cash, because Google’s search advertising technology is more sophisticated and is used by more advertisers. As a result, Google earns more on every search than its competitors, on average.
A similar partnership between Yahoo and Microsoft might not have the same effect, because Microsoft’s base of advertisers is smaller than Yahoo’s. People involved in the confidential discussions said that search advertising was certainly a part of Microsoft’s renewed interest in Yahoo, but they cautioned that any relationship being discussed might be different from the one the company had been contemplating with Google.
A Google representative did not return a phone call seeking comment.
It is unclear whether Microsoft would pursue a takeover bid again. In its statement on Sunday, Microsoft insisted it was not making such a bid, but hinted that it could be persuaded to reverse course.
“Microsoft is not proposing to make a new bid to acquire all of Yahoo at this time, but reserves the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo or discussions with shareholders of Yahoo or Microsoft or with other third parties,” the company said.
The new discussions also come as Yahoo is facing increasing pressure from shareholders, some of whom are furious that its board did not work harder to reach a deal to sell the company to Microsoft. Last week, Mr. Icahn said the directors had “acted irrationally and lost the faith of shareholders.” People close to Microsoft and Mr. Icahn say that neither has been in contact with the other.
Yahoo released a statement late on Sunday saying that it continues to explore strategic alternatives and remains open to any proposals that are good for its shareholders.
“Yahoo’s board of directors will evaluate each of our alternatives, including any Microsoft proposal, consistent with its fiduciary duties, with a focus on maximizing stockholder value,” the statement said. Yahoo also said that it had confirmed with Microsoft that the software giant was not interested an outright acquisition of Yahoo at this time.
Times Topics: Microsoft-Yahoo DealMicrosoft said on Sunday that it had approached Yahoo, this time with an ostensibly narrower aim: a collaboration on Internet advertising. But it hinted that it could still seek a takeover down the road.
The renewed talks reflect both Microsoft’s fears and Yahoo’s potential ills. Microsoft wants to head off any collaboration on advertising between Yahoo and the market leader, Google. At the same time, Microsoft is seeking to capitalize on the perceived weakness of Yahoo, which is facing a proxy battle with the activist investor Carl C. Icahn over the failed takeover talks.
Mr. Icahn, who has made a career out of agitating for change at some of the nation’s largest companies, bought a stake in Yahoo after the Microsoft takeover negotiations collapsed. He has named a slate of directors and threatened to unseat Yahoo’s management — or at least push Yahoo back into Microsoft’s arms.
On Monday morning, the report of Microsoft’s renewed interest in Yahoo had only a mild effect on the two companies’ stocks. In early trading, Yahoo was at $27.98, up 32 cents, and Microsoft was at $29.69, off 30 cents.
Microsoft released a brief statement on Sunday disclosing the renewed talks, a surprising reversal just weeks after it withdrew its $47.5 billion bid for Yahoo and said it had “moved on.”
In an e-mail message to Microsoft employees on Sunday afternoon, a senior Microsoft executive seemed to acknowledge that moving on might be difficult.
In his memo, Kevin Johnson, the executive in charge of Microsoft’s Internet business, emphasized the urgency felt at Microsoft about its failure to make more progress in catching up to Google.
“Regardless of the outcome of any new discussions,” he wrote, “it is important that we continue to move forward to strengthen our online services business. The fact is that we are not where we want to be in this business yet and we’ve been in this position longer than we’d all like.”
Mr. Johnson then outlined Microsoft’s ambitious agenda in Internet search and online advertising, exploiting the company’s strengths in desktop software and newer fields like cellphone software. Among the goals enumerated in the memo are to “innovate and disrupt in search,” “win in display” ads online and “reinvent portal and social media experiences.”
Microsoft’s hastily revived effort to reach some kind of deal with Yahoo seems to suggest that the software giant has doubts about whether it can achieve those goals on its own.
Indeed, Microsoft’s on-again, off-again interest in Yahoo has raised questions from analysts, investors, customers and employees about its strategy. Amid the discussions, Microsoft is scheduled to present its online strategy to advertisers at a gathering this week.
People involved in the confidential discussions between Microsoft and Yahoo said the talks centered on a partnership or joint venture for search-related advertising to compete against Google. When Microsoft first made its unsolicited bid of $31 a share for Yahoo in February, it said it was doing so as part of its battle to increase its relatively small slice of the search-related advertising market against Google, a giant with about 60 percent of the United States market, according to the measurement firm comScore.
By comparison, Yahoo has about 21 percent of the market, and Microsoft has about 9 percent, comScore said.
The timing of Microsoft’s new approach may be a turning point in the months-long story or just an opportunistic effort to further insert itself into a dance between Yahoo and Google. Yahoo has been racing to complete its own partnership with Google and was expected to announce a formal agreement as early as this week. A Yahoo-Google partnership, which would likely face antitrust scrutiny, could make Yahoo a less desirable partner or takeover candidate for Microsoft.
The Google-Yahoo discussions have been centered around the notion of Google delivering ads alongside some Yahoo searches. Such a deal would help Yahoo generate more cash, because Google’s search advertising technology is more sophisticated and is used by more advertisers. As a result, Google earns more on every search than its competitors, on average.
A similar partnership between Yahoo and Microsoft might not have the same effect, because Microsoft’s base of advertisers is smaller than Yahoo’s. People involved in the confidential discussions said that search advertising was certainly a part of Microsoft’s renewed interest in Yahoo, but they cautioned that any relationship being discussed might be different from the one the company had been contemplating with Google.
A Google representative did not return a phone call seeking comment.
It is unclear whether Microsoft would pursue a takeover bid again. In its statement on Sunday, Microsoft insisted it was not making such a bid, but hinted that it could be persuaded to reverse course.
“Microsoft is not proposing to make a new bid to acquire all of Yahoo at this time, but reserves the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo or discussions with shareholders of Yahoo or Microsoft or with other third parties,” the company said.
The new discussions also come as Yahoo is facing increasing pressure from shareholders, some of whom are furious that its board did not work harder to reach a deal to sell the company to Microsoft. Last week, Mr. Icahn said the directors had “acted irrationally and lost the faith of shareholders.” People close to Microsoft and Mr. Icahn say that neither has been in contact with the other.
Yahoo released a statement late on Sunday saying that it continues to explore strategic alternatives and remains open to any proposals that are good for its shareholders.
“Yahoo’s board of directors will evaluate each of our alternatives, including any Microsoft proposal, consistent with its fiduciary duties, with a focus on maximizing stockholder value,” the statement said. Yahoo also said that it had confirmed with Microsoft that the software giant was not interested an outright acquisition of Yahoo at this time.
Sunday, May 18, 2008
MICROSOFT ABOUT AN ALTERNATIVE TRANSACTION TALKS WITH YAHOO
(CNN) -- Microsoft is talking to Yahoo! about an alternative transaction that doesn't involve an acquisition, the world's largest software maker said Sunday.
Yahoo said it is open to "pursuing any transaction which is in the best interest of our stockholders."
The announcement comes two weeks after Microsoft abruptly stopped its pursuit of Yahoo, withdrawing a sweetened $46 billion offer and saying it would not make a hostile bid for the Internet company.
"Microsoft is considering and has raised with Yahoo! an alternative that would involve a transaction with Yahoo! but not an acquisition of all of Yahoo!," a Microsoft statement said Sunday. "Microsoft is not proposing to make a new bid to acquire all of Yahoo! at this time, but reserves the right to reconsider that alternative .... There of course can be no assurance that any transaction will result from these discussions."
In response, Yahoo issued a statement in the evening, saying the company "has confirmed with Microsoft that it is not interested in pursuing an acquisition of all of Yahoo! at this time."
The statement goes on to say, Yahoo is open to "pursuing any transaction which is in the best interest of our stockholders," and that the company would be willing to evaluate alternative transactions, including "any Microsoft proposal."
Don't Miss
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CNN/Money: Microsoft withdraws bid for Yahoo
Microsoft, Yahoo fail to resolve bid impasse
Business 360: Yahoo plays hardball
Microsoft has said the breakdown of the acquisition proposal came despite having raised its bid to $33 a share -- $5 billion above what it said was the current value of the offer -- and a 70 percent premium compared to its original offer.
Yahoo's board unanimously rejected the deal, saying it "substantially" undervalued the company.
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All About Yahoo! Inc. • Microsoft Corporation
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Microsoft considers new Yahoo! deal Clinton: 'Think about this as a hiring decision'
Yahoo said it is open to "pursuing any transaction which is in the best interest of our stockholders."
The announcement comes two weeks after Microsoft abruptly stopped its pursuit of Yahoo, withdrawing a sweetened $46 billion offer and saying it would not make a hostile bid for the Internet company.
"Microsoft is considering and has raised with Yahoo! an alternative that would involve a transaction with Yahoo! but not an acquisition of all of Yahoo!," a Microsoft statement said Sunday. "Microsoft is not proposing to make a new bid to acquire all of Yahoo! at this time, but reserves the right to reconsider that alternative .... There of course can be no assurance that any transaction will result from these discussions."
In response, Yahoo issued a statement in the evening, saying the company "has confirmed with Microsoft that it is not interested in pursuing an acquisition of all of Yahoo! at this time."
The statement goes on to say, Yahoo is open to "pursuing any transaction which is in the best interest of our stockholders," and that the company would be willing to evaluate alternative transactions, including "any Microsoft proposal."
Don't Miss
Billionaire investor seeks to oust Yahoo board
CNN/Money: Microsoft withdraws bid for Yahoo
Microsoft, Yahoo fail to resolve bid impasse
Business 360: Yahoo plays hardball
Microsoft has said the breakdown of the acquisition proposal came despite having raised its bid to $33 a share -- $5 billion above what it said was the current value of the offer -- and a 70 percent premium compared to its original offer.
Yahoo's board unanimously rejected the deal, saying it "substantially" undervalued the company.
E-mail to a friend
Share this on:
Mixx
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| Mixx it | Share
Copyright 2008 The Associated Press. All rights reserved.This material may not be published, broadcast, rewritten, or redistributed.
All About Yahoo! Inc. • Microsoft Corporation
From the Blogs: Controversy, commentary, and debate
Sit tight, we're getting to the good stuff
powered by Sphere
Top News
Microsoft considers new Yahoo! deal Clinton: 'Think about this as a hiring decision'
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Mergers & Acquisitions
Hewlett-Packard Buying EDS for $13.9B
The deal represents a challenge to IBM. The company also released preliminary second-quarter guidance.
05/13/08 - 09:39 AM EDT
Hewlett-Packard Set to Swing at IBM
The PC maker is in talks to buy EDS in a deal worth up to $13 billion, potentially reshaping the technology outsourcing market.
05/12/08 - 05:29 PM EDT
Hewlett-Packard Closes In on EDS Deal
The two tech giants will reportedly merge in a transaction worth up to $13 billion. Shares of EDS jump 28% on the news.
05/12/08 - 03:35 PM EDT
Cablevision Buys Long Island's Newsday
The $650 million deal beat bids by News Corp. and the publisher of New York tabloid the Daily News.
05/12/08 - 03:13 PM EDT
Energy/Commodities
Gold Prices Killing Jewelers
Kitco gold analyst Jon Nadler says the cost of bullion is now so high it's sending jewelers bankrupt. Even Zales is at risk, he says.
2008-05-17 23:58:27.0
Crude Oil Closes Above $126
West Texas crude reached an intraday best at $127.65 -- its highest level ever.
2008-05-16 18:39:42.0
Dicker: Don't Treat Commodities Like Stocks
If you think of corn as an equity, you're bound to get burned.
2008-05-16 15:12:09.0
Crude Oil Futures Close Flat
Oil traversed a wide trading range Thursday, going as high as $126.64 a barrel and as low as $120.75.
2008-05-15 16:39:45.0
Hewlett-Packard Buying EDS for $13.9B
The deal represents a challenge to IBM. The company also released preliminary second-quarter guidance.
05/13/08 - 09:39 AM EDT
Hewlett-Packard Set to Swing at IBM
The PC maker is in talks to buy EDS in a deal worth up to $13 billion, potentially reshaping the technology outsourcing market.
05/12/08 - 05:29 PM EDT
Hewlett-Packard Closes In on EDS Deal
The two tech giants will reportedly merge in a transaction worth up to $13 billion. Shares of EDS jump 28% on the news.
05/12/08 - 03:35 PM EDT
Cablevision Buys Long Island's Newsday
The $650 million deal beat bids by News Corp. and the publisher of New York tabloid the Daily News.
05/12/08 - 03:13 PM EDT
Energy/Commodities
Gold Prices Killing Jewelers
Kitco gold analyst Jon Nadler says the cost of bullion is now so high it's sending jewelers bankrupt. Even Zales is at risk, he says.
2008-05-17 23:58:27.0
Crude Oil Closes Above $126
West Texas crude reached an intraday best at $127.65 -- its highest level ever.
2008-05-16 18:39:42.0
Dicker: Don't Treat Commodities Like Stocks
If you think of corn as an equity, you're bound to get burned.
2008-05-16 15:12:09.0
Crude Oil Futures Close Flat
Oil traversed a wide trading range Thursday, going as high as $126.64 a barrel and as low as $120.75.
2008-05-15 16:39:45.0
MARKET FEATURES
Asia: Indian Investors Shrug Off Inflation
05/17/08 - 06:44 PM EDT
HDB PTI SLT TCL TGI WIT
TSC Staff
Globetrotting Entrepreneurs
Go Green With Incentives
Eight Tips for Increasing Your Average Sale
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Stocks in India rose Friday as investors shook off government data that showed inflation hit a three-and-a-half year high. India's wholesale price index jumped to 7.83% for the week ending May 3, vs. 7.61% for the previous week, due to sharp increases in the price of foods and manufactured goods. Traders said inflation could go even higher, which sent the rupee falling to multi-year lows against the dollar.
The market "had anticipated a rise in inflation and discounted it," said Hitesh Agarwal, research head at Angel Broking. "There's consensus that government measures will bring it down to 6% in a few weeks."
The Bombay Stock Exchange's Sensex Index added 81.40, or 0.5%, to 17,434.94.
Shares of Indian mining company Sterlite(SLT - Cramer's Take - Stockpickr) surged 4.9% after TheStreet.com's Jim Cramer advised buying the stock on CNBC's "Stop Trading!" show Friday. Cramer said SLT will benefit from China's demand for zinc, copper and aluminum. American depositary shares of Sterlite, which trade on the NYSE, closed up 90 cents to $21.82 on three times the average daily volume.
Indian information technology company Wipro(WIT - Cramer's Take - Stockpickr) announced it will seek shareholder approval to enter the renewable energy business market. In a notice to shareholders, the company said it plans build custom solar and renewable energy plants and offer customized solutions for solar, small turbines, biogas, biomass fuel and geothermal energy systems. Shares of WIT slipped 2.4% to $13.27.
Premiere Global Services(PGI - Cramer's Take - Stockpickr) announced it has formed a partnership with global communications provider Tata Communications(TCL - Cramer's Take - Stockpickr) to jointly market business solutions supported by the Premiere Global Communications Operating Systems (PGiCOS), which will include Web conferencing and collaboration applications. Under the terms of the deal, Premiere Global will install and deploy its PGiCOS communications technology in India with Tata Communications providing network infrastructure, service and sales channels to the Indian market. Shares of TCL traded up 1% to $24.05.
Leading the decliners among Indian ADRs Friday were Patni Computer Systems(PTI - Cramer's Take - Stockpickr), which fell 2.1% to $13.48; HDFC Bank(HDB - Cramer's Take - Stockpickr), which dropped 1.6% to $108.05; and WNS(WNS - Cramer's Take - Stockpickr), which closed down 1.1% to $17.96.
Be sure to check out the Far East Portfolio at Stockpickr.com every night to find out which stocks in India and China are making big moves and announcing major news.
China Recap
Stocks in Hong Kong advanced Friday after the government released key economic numbers that showed strong growth for the region, due to rising investment, growing exports and booming tourism. Annual growth in gross domestic product rose to 7.1% in the first-quarter, well above expectations of 6.1%. The government said full-year economic growth will hit the top of its forecast range of 4% to 5%.
"Economies which are leveraged off China have continued to perform very well," said Glenn Maguire, Asia Pacific chief economist at Societe Generale. "Hong Kong is linked to the mainland via a services dynamic. We are confident growth will come in at around 6% this year."
The Shanghai Composite Index slipped 13.09 points, or 0.36%, to 3,624.23 and Hong Kong's Hang Seng Index rose 151.93 points, or 0.59%, to 25,748.33
Shares of China Finance Online( JRJC - Cramer's Take - Stockpickr) surged 18% after the company raised its first-quarter earnings and revenue forecast, due to strong demand for its key subscription services. The Chinese online financial information provider said first-quarter earnings will come in between the range of $4.5 million to $5 million, vs. previous guidance of $3.7 million to $4 million. The company said revenue guidance for the first-quarter will be $10.5 million to $10.8 million, vs. previous estimates of $10 million to $10.5 million. American depositary shares of China Finance Online, which trade on the Nasdaq, traded up $4.11 to $26.15 on heavy volume.
Piper Jaffray removed Chinese alternative energy company Yingli Green Energy( YGE - Cramer's Take - Stockpickr) from its Alpha List and slashed its price target to $60 from $65, despite saying the stock has some of the best risk reward for the solar sector. Shares of YGE fell 1.7% to $24.88. China Precision Steel( CPSL - Cramer's Take - Stockpickr), a U.S.-based firm which conducts a majority of its business in China through its wholly owned operating subsidiary, Shanghai Chengtong Precision Strip, announced that net income for the third-quarter soared 231% to $4.6 million, due to strong growth in exports of low-carbon, hard-rolled products and subcontracting work. Revenue grew 61.3% to $18.7 million, vs. $11.6 million from the previous year, and gross profit surged 58% to $5.3 million, vs. $3.4 million from a year ago. Shares of CPSL soared 37% to $5.97 on extremely heavy volume.
Noah Education( NED - Cramer's Take - Stockpickr), a Chinese provider of interactive education, reported a 114% jumped in net income for the third-quarter to $7.9 million, due to strong growth for its core products. Revenue for the third-quarter surged 8.5% to $26.3 million and gross margins were 55.3%. vs. 50.8% from a year earlier. The company said net revenue growth for the fourth-quarter will come in the range of 16% to 18% and net income growth for the fourth-quarter will come in between the range of 350% to 400%. Shares of NED jumped 16% to $7.99 on very heavy volume.
Some big movers Friday were Solarfun Power( SOLF - Cramer's Take - Stockpickr), which rose 23% to $22.84; China Techfaith(CNTF - Cramer's Take - Stockpickr), which soared 19% to $6.55; Fuwei Films( FFHL - Cramer's Take - Stockpickr), which jumped 13% to $3.45; and Origin Agritech( SEED - Cramer's Take - Stockpickr), which traded up 12% to $7.49.
Be sure to check out the Far East Portfolio at Stockpickr.com every night to find out which stocks in India and China are making big moves and announcing major news.
For more on Asia, check out Daniel Harrison's coverage at TheStreet.com.
05/17/08 - 06:44 PM EDT
HDB PTI SLT TCL TGI WIT
TSC Staff
Globetrotting Entrepreneurs
Go Green With Incentives
Eight Tips for Increasing Your Average Sale
Article Tools Email this Article Print this Article Rss Feed Del.icio.us Digg Facebook StumbleUpon Twitter Yahoo! BuzzPLAY BEAT THE STREET GAME NOW
Be the
First
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Recommend
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Recommend it
Stocks in India rose Friday as investors shook off government data that showed inflation hit a three-and-a-half year high. India's wholesale price index jumped to 7.83% for the week ending May 3, vs. 7.61% for the previous week, due to sharp increases in the price of foods and manufactured goods. Traders said inflation could go even higher, which sent the rupee falling to multi-year lows against the dollar.
The market "had anticipated a rise in inflation and discounted it," said Hitesh Agarwal, research head at Angel Broking. "There's consensus that government measures will bring it down to 6% in a few weeks."
The Bombay Stock Exchange's Sensex Index added 81.40, or 0.5%, to 17,434.94.
Shares of Indian mining company Sterlite(SLT - Cramer's Take - Stockpickr) surged 4.9% after TheStreet.com's Jim Cramer advised buying the stock on CNBC's "Stop Trading!" show Friday. Cramer said SLT will benefit from China's demand for zinc, copper and aluminum. American depositary shares of Sterlite, which trade on the NYSE, closed up 90 cents to $21.82 on three times the average daily volume.
Indian information technology company Wipro(WIT - Cramer's Take - Stockpickr) announced it will seek shareholder approval to enter the renewable energy business market. In a notice to shareholders, the company said it plans build custom solar and renewable energy plants and offer customized solutions for solar, small turbines, biogas, biomass fuel and geothermal energy systems. Shares of WIT slipped 2.4% to $13.27.
Premiere Global Services(PGI - Cramer's Take - Stockpickr) announced it has formed a partnership with global communications provider Tata Communications(TCL - Cramer's Take - Stockpickr) to jointly market business solutions supported by the Premiere Global Communications Operating Systems (PGiCOS), which will include Web conferencing and collaboration applications. Under the terms of the deal, Premiere Global will install and deploy its PGiCOS communications technology in India with Tata Communications providing network infrastructure, service and sales channels to the Indian market. Shares of TCL traded up 1% to $24.05.
Leading the decliners among Indian ADRs Friday were Patni Computer Systems(PTI - Cramer's Take - Stockpickr), which fell 2.1% to $13.48; HDFC Bank(HDB - Cramer's Take - Stockpickr), which dropped 1.6% to $108.05; and WNS(WNS - Cramer's Take - Stockpickr), which closed down 1.1% to $17.96.
Be sure to check out the Far East Portfolio at Stockpickr.com every night to find out which stocks in India and China are making big moves and announcing major news.
China Recap
Stocks in Hong Kong advanced Friday after the government released key economic numbers that showed strong growth for the region, due to rising investment, growing exports and booming tourism. Annual growth in gross domestic product rose to 7.1% in the first-quarter, well above expectations of 6.1%. The government said full-year economic growth will hit the top of its forecast range of 4% to 5%.
"Economies which are leveraged off China have continued to perform very well," said Glenn Maguire, Asia Pacific chief economist at Societe Generale. "Hong Kong is linked to the mainland via a services dynamic. We are confident growth will come in at around 6% this year."
The Shanghai Composite Index slipped 13.09 points, or 0.36%, to 3,624.23 and Hong Kong's Hang Seng Index rose 151.93 points, or 0.59%, to 25,748.33
Shares of China Finance Online( JRJC - Cramer's Take - Stockpickr) surged 18% after the company raised its first-quarter earnings and revenue forecast, due to strong demand for its key subscription services. The Chinese online financial information provider said first-quarter earnings will come in between the range of $4.5 million to $5 million, vs. previous guidance of $3.7 million to $4 million. The company said revenue guidance for the first-quarter will be $10.5 million to $10.8 million, vs. previous estimates of $10 million to $10.5 million. American depositary shares of China Finance Online, which trade on the Nasdaq, traded up $4.11 to $26.15 on heavy volume.
Piper Jaffray removed Chinese alternative energy company Yingli Green Energy( YGE - Cramer's Take - Stockpickr) from its Alpha List and slashed its price target to $60 from $65, despite saying the stock has some of the best risk reward for the solar sector. Shares of YGE fell 1.7% to $24.88. China Precision Steel( CPSL - Cramer's Take - Stockpickr), a U.S.-based firm which conducts a majority of its business in China through its wholly owned operating subsidiary, Shanghai Chengtong Precision Strip, announced that net income for the third-quarter soared 231% to $4.6 million, due to strong growth in exports of low-carbon, hard-rolled products and subcontracting work. Revenue grew 61.3% to $18.7 million, vs. $11.6 million from the previous year, and gross profit surged 58% to $5.3 million, vs. $3.4 million from a year ago. Shares of CPSL soared 37% to $5.97 on extremely heavy volume.
Noah Education( NED - Cramer's Take - Stockpickr), a Chinese provider of interactive education, reported a 114% jumped in net income for the third-quarter to $7.9 million, due to strong growth for its core products. Revenue for the third-quarter surged 8.5% to $26.3 million and gross margins were 55.3%. vs. 50.8% from a year earlier. The company said net revenue growth for the fourth-quarter will come in the range of 16% to 18% and net income growth for the fourth-quarter will come in between the range of 350% to 400%. Shares of NED jumped 16% to $7.99 on very heavy volume.
Some big movers Friday were Solarfun Power( SOLF - Cramer's Take - Stockpickr), which rose 23% to $22.84; China Techfaith(CNTF - Cramer's Take - Stockpickr), which soared 19% to $6.55; Fuwei Films( FFHL - Cramer's Take - Stockpickr), which jumped 13% to $3.45; and Origin Agritech( SEED - Cramer's Take - Stockpickr), which traded up 12% to $7.49.
Be sure to check out the Far East Portfolio at Stockpickr.com every night to find out which stocks in India and China are making big moves and announcing major news.
For more on Asia, check out Daniel Harrison's coverage at TheStreet.com.
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