Microsoft intends to launch another takeover of Yahoo

Absrtact: October 6 News, according to foreign media reports, there are rumors that Microsoft intends to launch a takeover of Yahoo, the news to stimulate Yahoo shares in Wednesday trading rose more than 10%, the company's Karolbach CEO Carol Bartz after the highest share price.

October 6 News, according to foreign media reports, there are rumors that Microsoft intends to launch a takeover of Yahoo, the news that Yahoo shares in Wednesday rose more than 10%, the company's Bartz CEO Carol Bartz after the highest share price.

In Wednesday, unnamed sources were quoted by the media as saying that Microsoft was considering whether to launch a takeover of Yahoo, and a Microsoft executive said there was still disagreement within Microsoft over the launch of another Yahoo takeover. The rumor spurred Yahoo's share price to rise to $16.15 in a Wednesday deal, the highest share price for Bartz since leaving office five weeks ago. Yahoo shares in Wednesday closed at 15.92 U.S. dollars, the day rose 1.46 U.S. dollars, a gain of 10.1%. Yahoo's shares fell 46 cents in the post-trading deal.

A Microsoft spokeswoman declined to comment.

Full consideration is still needed

It is widely believed that Microsoft is one of the potential companies most likely to buy Yahoo because the company's biggest software company has enough cash to complete the deal, and the history of Microsoft and Yahoo shows that such a deal is feasible.

But Microsoft's takeover of Yahoo still needs to be fully considered. Part of the reason is that Yahoo and Microsoft have reached a partnership agreement on Internet search, which has reduced Microsoft's willingness to buy Yahoo outright. In addition, Microsoft is facing the challenge of falling PC sales, in which case the acquisition of Yahoo may increase the pressure.

Despite some long-standing problems, Yahoo still has a certain appeal because Yahoo remains one of the most recognizable brands in the Internet arena. In addition, although the user's stay on the Yahoo site gradually decreased and not as frequent as Facebook, but the Yahoo site can attract nearly 800 million users around the world.

Several other companies may be potential buyers of Yahoo. Yahoo co-founder Jerry Yang and David Fillo David Filo last month sent a memo to employees acknowledging that several interested companies have contacted them. After receiving these inquiries, Yahoo has hired investment bank Goldman Sachs and Allen & Co to advise its board.

In the memo, Jerry Yang and Philo said Yahoo's board's strategic assessment could last for several months and that the company would look for a new CEO. This time Yahoo CFO Tim Moss (Tim Morse) will manage the company. Ms. Bartz, who became Yahoo's CEO in 2009, said publicly that Yahoo should accept Microsoft's original offer.

Multi-party acquisition intention

To narrow the gap with Google in Internet search, Microsoft opened a 31-dollar purchase price to Yahoo in early 2008, and eventually raised the price to $33 a share, equivalent to $47.5 billion a week. But Jerry Yang asked Microsoft to offer higher prices, and Microsoft eventually abandoned the takeover.

The decision has angered Yahoo's shareholders, and Yahoo's board has failed to see the results of its attempts to prove its rejection of Microsoft's takeover. Most analysts believe the shares will rise after Yahoo is sold to Microsoft, as Yahoo's performance is not growing as promised by the board, but is slipping. Any other acquirer may not be able to offer the price that Microsoft originally proposed.

Analysts expect Yahoo's share price to rise to $18 to $22 per share. The question now is whether Microsoft will be as keen on acquiring Yahoo as it was three years ago. As part of the revival plan, Yahoo has worked with Microsoft to outsource its search business to Microsoft. The 10-year cooperation agreement between the two sides allowed Microsoft to get 12% of the revenue from Yahoo's search ads and, more importantly, to see more personal interest from more valuable internet users.

Microsoft may be allied with other companies to buy Yahoo. The companies that may be allied include Alibaba, the company's chairman, Jack Ma, who recently publicly expressed interest in acquiring Yahoo. In addition, companies interested in acquiring Yahoo include private equity firms Silver Lake and Providence Equity, VCs Andreessen Horowitz, Russian investment group DST and even another downhill internet company, AOL.