Though Microsoft has not yet succeeded in its attempts to take over Yahoo despite offering whopping price of 47.5 Billion Dollars, hopes have revived on a possible deal between the two which may beneift both Yahoo in terms of better share-value and Microsoft in extending its foray into search engine segment.
It is rather yahoo and not Microsoft which is on fire from investors and alalysts alike in not agreeing for the earlier offer(s) of Microsoft. Carl Ichan, the major investor in Yahoo who has the support of the hedge-funder Paulson & Co has threatened to oust the entire board including its CEO Jerry Yang whom he is holding responsible for not agreeing to the take-over. As a result, Yahoo has been forced to soften its stand by stating that is is open to pursuing measures which would be in the best interests of its investors. This includes any proposal that may emanate from Microsoft.
It is learnt under the new proposal Yahoo may carry search advertisement from Microsoft. This would be beneficial to Microsoft not only for enlarging its presence in the search engine segment but also scuttle a similar proposal under discussion between Yahoo and Google. Beyond this Microsoft did not elaborate about the proposal.
Market Analysts echo the views of Mr.Tony Mastin of William Blair & Co that the best strategy for Yahoo is to embrace Microsoft. If the deal is structured in the right manner, Yahoo may retain more control and autonomy than what they have today all the more important that value of its shares would be reflected in line with the market performance, meaning that it would receive a boost.
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