Microsoft will take over Yahoo legally
Or a guide on how to complete what you started to the end.
Yesterday, Times Online published information about how much Microsoft wants to bend Yahoo for itself and at the same time save. There is already enough information in RuNet about this incident, but let's try to collect the facts in one note.
Recall that on February 11, Yahoo Inc. officially refused the proposal for its sale for $ 44.6 billion, received a week earlier from Microsoft. This decision was made by the board of directors of the company. However, analysts believed that the struggle for the purchase of Yahoo did not end there and Microsoft would increase the amount of the offer.
After which the big three quarreled: Microsoft said that Google controls 75% of the world’s Internet search and that strong competitors are needed to increase the quality of services, and those that can appear only after the merger of M and Y. They were offended by Google and quite reasonably noticed that in case of Gates’s takeover of Yahoo will dictate its terms not only in the operating system market, but also on the Web, and this will lead to disaster. After that, Google offered support to the guys from Y. The latter felt that they were completely independent and ultimately refused the offer, although according to Reuters, they had a good discussion about a possible alliance with Google.
Nobody could predict what happened next: pensioners rebelled. The fact is that a significant part of Yahoo’s shares was in the hands of a number of pension funds, which would be satisfied with the sale of shares of the company for more than twice the market value. The old people were so divided that they had already filed seven lawsuits against the administration of the largest portal for the management’s refusal to sell the company.
Microsoft decided to play on this, starting the power of attorney fight. This is a legal process during which a separate group of shareholders seeks the right to vote with their number of shares (it should be significant) for a personal list of the board of directors. The lawyers of the company contacted representatives of offended old-timers with the aim of pushing the company’s employees loyally to small-scale employees to the board of directors.
According to expertsa proxy fight will cost Microsoft $ 20 million to $ 30 million. "Microsoft is doing the right thing," said Toan Tran, an analyst at research firm Morningstar. “First they made an offer to buy Yahoo for $ 44.6 billion, and now they’ll try to get the board to accept it under threat of displacement.” Full savings, because an increase in the value of shares by at least 1% would cost Microsoft'y at least one and a half billion evergreen bills.
Finally, Yahoo realized that they had taken it seriously: there were rumors on the Web that company representatives had met with people from AOL, then went to bow to Rupert Murdoch. And if the symbiosis of Yahoo with the former looks strange, then the possible help from News Corp is worth considering. Firstly, the proposal from Murdoch has already been received by the company earlier, although it rejected it. Secondly, Yahoo could be significantly strengthened if the MySpace social network became part of it, since Yahoo Mash essentially died after birth, its popularity is extremely small. Thirdly, according to the same rumors, Murdoch is offered 20% for financial assistance, and given the growth of the online advertising market, this is very tempting. The fact is that Yahoo ads even made it to PDF, and this once again proves that the Internet giant takes the second position in the market after Google. In the end, it’s worth considering that by 2009 the ad market will double, and therefore the billions invested will return more than for Microsoft.
The monopoly is here, the monopoly is there, param pam pam, param pam pam. It is possible that such an anthem of the winner will soon be sung by Steve Ballmer and Billy Gates, dancing on the bones of Jerry Young.
Yesterday, Times Online published information about how much Microsoft wants to bend Yahoo for itself and at the same time save. There is already enough information in RuNet about this incident, but let's try to collect the facts in one note.
Recall that on February 11, Yahoo Inc. officially refused the proposal for its sale for $ 44.6 billion, received a week earlier from Microsoft. This decision was made by the board of directors of the company. However, analysts believed that the struggle for the purchase of Yahoo did not end there and Microsoft would increase the amount of the offer.
After which the big three quarreled: Microsoft said that Google controls 75% of the world’s Internet search and that strong competitors are needed to increase the quality of services, and those that can appear only after the merger of M and Y. They were offended by Google and quite reasonably noticed that in case of Gates’s takeover of Yahoo will dictate its terms not only in the operating system market, but also on the Web, and this will lead to disaster. After that, Google offered support to the guys from Y. The latter felt that they were completely independent and ultimately refused the offer, although according to Reuters, they had a good discussion about a possible alliance with Google.
Nobody could predict what happened next: pensioners rebelled. The fact is that a significant part of Yahoo’s shares was in the hands of a number of pension funds, which would be satisfied with the sale of shares of the company for more than twice the market value. The old people were so divided that they had already filed seven lawsuits against the administration of the largest portal for the management’s refusal to sell the company.
Microsoft decided to play on this, starting the power of attorney fight. This is a legal process during which a separate group of shareholders seeks the right to vote with their number of shares (it should be significant) for a personal list of the board of directors. The lawyers of the company contacted representatives of offended old-timers with the aim of pushing the company’s employees loyally to small-scale employees to the board of directors.
According to expertsa proxy fight will cost Microsoft $ 20 million to $ 30 million. "Microsoft is doing the right thing," said Toan Tran, an analyst at research firm Morningstar. “First they made an offer to buy Yahoo for $ 44.6 billion, and now they’ll try to get the board to accept it under threat of displacement.” Full savings, because an increase in the value of shares by at least 1% would cost Microsoft'y at least one and a half billion evergreen bills.
Finally, Yahoo realized that they had taken it seriously: there were rumors on the Web that company representatives had met with people from AOL, then went to bow to Rupert Murdoch. And if the symbiosis of Yahoo with the former looks strange, then the possible help from News Corp is worth considering. Firstly, the proposal from Murdoch has already been received by the company earlier, although it rejected it. Secondly, Yahoo could be significantly strengthened if the MySpace social network became part of it, since Yahoo Mash essentially died after birth, its popularity is extremely small. Thirdly, according to the same rumors, Murdoch is offered 20% for financial assistance, and given the growth of the online advertising market, this is very tempting. The fact is that Yahoo ads even made it to PDF, and this once again proves that the Internet giant takes the second position in the market after Google. In the end, it’s worth considering that by 2009 the ad market will double, and therefore the billions invested will return more than for Microsoft.
The monopoly is here, the monopoly is there, param pam pam, param pam pam. It is possible that such an anthem of the winner will soon be sung by Steve Ballmer and Billy Gates, dancing on the bones of Jerry Young.