Sunday, February 3, 2008

Microsoft Bids Billions for Yahoo


Microsoft has announced plans to make a bid to purchase Yahoo. This week’s article looks at the reason for Microsoft’s effort to acquire Yahoo and the implications that this merger would have. Go to the link below and read the article. Write a reflective comment that addresses my questions and shows your understanding of the article.

Microsoft’s bid to take over Yahoo is considered hostile. If you were in Jerry Yang’s position, what would you do? Should Microsoft be allowed to purchase Yahoo? Should the government get involved with antitrust concerns about this merger and other mergers of large companies? If the merger does take place, how do you think it will affect searching and online advertising?

Microsoft Article

22 comments:

gabe said...

If I was this "Jerry Yang" I would definitely take the deal. I would sell just about anything for like what 40 something BILLION dollars.

Microsoft should be able to purchase whatever there hearts desire.

The government shouldn't do anything at all. If Microsoft wanted to buy the continent of South America they should be allowed and the government shouldn't interfere.

I really think it will be fine, if anything it will get better.

omar g said...

If I were Jerry Yang I would for sure take the deal. I would also take a huge vacation with all that money. Of course Microsoft should be able to purchase Yahoo, they should do whatever they like. The government is just messing around with everyone like they always do. They don’t have the right to get involved.

omar G

Sali said...

The offer made to Jerry Yang was quite generous. I would probably encourage Mr. Yang to take the offer and let Microsoft run Yahoo. This is because Mr. Yang said it himself that he doesn’t really predict a change in how things are going for Yahoo until at least 2009. However, Microsoft is already a large and expanding technological empire and they can probably run Yahoo much better than it was being run before. This move is obviously very beneficial to Microsoft in the long run because millions of people use Microsoft and millions of other use Yahoo, bring the two together and you might even have a combination that can take on Google! But I can also kind of understand why Jerry Yang wouldn’t want to sell the Yahoo. Right now we’re experiencing a massive technological revolution and who knows what might happen a few years from now. Yahoo might come up with something that could earn them more than what Microsoft is offering. For the time being, I think it would be smarter to sell Yahoo to Microsoft to give Google something to really compete with. A little competition is always good because it leads to new, better things.

sssalah said...

I think that Mr.Jerry Yang should take the offer because Microsoft is capable to run it perfectly, and I think that 40 billion dollars is such an exaggerated price because Facebook has the biggest search engine and it is only worth 15 billion dollars.

I think that the goverment should not interfere with the deal because they have absolutely nothing to do with it.

Jae Cha said...

I would not give up Yahoo if I were Mr. Yang. However from my point of view, I definitely want them to be merged. Microsoft surely has the right to take over Yahoo, and many people would probably want that too I guess. I think the government should take action against the antitrust since it would actually enhance the competitions. Google would easily beat the others thus creating less competition if this merger does not take place.

Phil's Blog said...

I do not believe that Microsoft trying to buy Yahoo is hostile. I believe this because Yahoo doesn’t have to sell their company to Microsoft, it is their choice. I also believe that Microsoft should be permitted to buy Yahoo if they want to. I don’t really understand what their problem is with being bought out by Microsoft. I also do not think that any Government should get involved with this predicament.

madeleine said...

I don't know much about business, but since Yahoo is so successful, I'm sure Microsoft alter it to much. Microsoft should certainly be able to purchase Yahoo, since they already have a monopoly on the internet and in computers. I don't think much would change. With business deals such as this one, I think the government should involve themselves. I don't think that this deal is hostile at all, since Yahoo still has a choice. I don't think Yahoo's ownership will really change much on the internet. Rupert Murdoch/NewsCorp bought my father's company (MarketWatch) last year and the only thing that changed was my family's insurance company. Looking at the website, you can't even tell, and even though Murdoch is an insane neo-con, the site still has editorial freedom.

ethar said...

Yes Microsoft’s bid to take over Yahoo is considered hostile because Microsoft cant just use its power and money to take over other mergers. If I were in Jerry’s position I would do what ever I could to keep Microsoft from taking over Yahoo. The government should be too busy to get involved with mergers and their problems. I don't think it's a good idea for the merger to take place because it will create problems between the Microsoft and Yahoo people that don't agree with union.

Yaz said...

I personally think that Jerry Yang should take the deal with 40 billion dollars. I don't think the government should do anything because its not hurting anyone and I don't think they should be able to have a say in it. I also don't think that Microsoft is trying to buy Yahoo hostile. Why would they do that if it's Yahoo's choice to sell the company or not. besides, Jerry Yang is already known as the executive chief,that's already a high title. He doesn't have much to lose for 40 billion dollars.

Dr. Laith B said...

If I was in Jerry Yang's position I would definitely not sell Yahoo. Why? You might ask. Well if a company like Microsoft is paying 44.6 billion dollars for my company, then they really want it. The fact that Microsoft is paying that huge amount of money tells me that it’s a good company that’s making money and attracting buyers. That’s why I won't sell Yahoo and instead I would keep it and keep making money. In a certain number of years I and Yahoo would probably make more than 44.6 billion dollars. Yes, of course Microsoft is allowed to purchase Yahoo. Companies are allowed to buy each other. If Jerry Yang accepts the offer, then it's official. So yes, Microsoft is allowed to buy Yahoo, and that goes for any other company willing to be bought. The government has no business what so ever in issues like this. Issues like this should only involve Yahoo and Microsoft. Only both companies have the right to be involved. No one knows what Microsoft's plan about what to do with Yahoo is but I think that if Yahoo becomes part of Microsoft than all advertising will become better since its all controlled by one great big company.

OmarK said...
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OmarK said...

Well, I'd be able to retire. That alone would make things easy on deciding for it
However, I really think this is futile. Sure, it'll allow them to monopolize a lot the internet. The top three biggest sites, live.com msn.com and yahoo.com. But, the reason they are buying it is just to beat out Google. I think that it is futile. Google has the leg up on them because of something simple: innovation. Microsoft is run to corporately and that is what is causing its downfall. Sure, both companies would benefit immensely from the merge. Just take a look at their stocks. Microsoft's went up 150% as did Yahoo's. But as far as this high staying. It won't last. Like I said, it's to corporate
Though, as a passing thought. If Bill Gates hadn't left Microsoft, then this wouldn't be happening. Unfortunate.

Joseph Jang said...
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Joseph Jang said...
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Joseph Jang said...

Microsoft is monopolizing the search engine websites. It has already purchased Google and also trying to buy Yahoo. Although it is a good deal, if I were Jerry Yang, I would not sell Yahoo to Microsoft, because it is a site that has a lot of potentials. Buying a company is not like buying a country, so if Microsoft wants to buy Yahoo, then the company has the right to buy. The government should not interfere with the market because America is a free market land. If Yahoo willingly sells itself to Microsoft, then Microsoft will have a greater extend, such as advertisements and search engine websites.

Dev Arora said...

If I were the chief of Yahoo, I would not accept the bid. I would still wait and hope that the share prices go back up and wait for the time when Google starts its drop-for everything that goes up, must come down. Being a Bill Gates supporter, I believe Microsoft should be able to purchase Yahoo. Looking at history, it is best for the people when government keeps itself involved in business. If this merger does take place, Google will be facing some serious competition with Microsoft.

Ibraheem Husseini said...

If I were in the position of Jerry Yang, I would not agree to Microsoft's hostile bid to merge the two companies together. Yahoo is a strong company that has been in the game for a long time. It's falling stocks were inevitable, but I agree with Mr. Yang when he claims that there could be a rise in Yahoo stock. Besides that concern, when Yahoo is merged with Microsoft, that could mean the laying off of many workers, due to the new management. So I do not think Microsoft should be allowed to purchase Yahoo. As for the government involvement in this merger, I would definitely say that there will be a large amount of suspicion as to whether or not Microsoft is seeking to set up for itself a monopoly in Internet advertising. Microsoft is playing the Google-mania fear to stage a systematic monopoly, where it has authority in almost all of the large Internet companies. However, if this merger does take place, it would mean a huge amount of rivalry between Microsoft and Google, and it will become an Internet Crusade. Microsoft will preach fear into other companies, and will ultimately gain their support, after all, if Yahoo merged with Microsoft, why shouldn't other companies? And if this monopolizing effect takes place with both Google and Microsoft, then it could mean cataclysmal rises and drops in the market.

SaMi said...

I believe that merging to major companies together is a good idea to take over the dot com world, and beat Google at its own game. No I believe that the government have no right to do anything and should leave these to companies to do as they please. I believe that Yahoo and Microsoft together will be the top of the dot com world and Google as Yahoo did, will drop down in the ranks and will have to do the same merge that Yahoo is doing at the moment.

Unknown said...

If I was Mr. Yang, I would sell my shares because this deal will combine the second and third largest search engines to compete with the world’s number one: Google. For many years Google has become a strong, useful and powerful company. Its pure simplicity and sheer genius has far surpassed any competitors. Yahoo and Microsoft both lag behind in market shares and advertising but if this deal is made, it will help both companies exponentially. Even though statistics show that if these two companies merge, they will not surpass Google’s market power, but at least it would decrease the gap between Google and the rest of the competition. In a more common understanding, this bid can be similar to the jungle’s ways of survival: the strong eats the weak. Yet in more legal terms, this deal is more complex. This deal would have to go through many acceptances and would take at least 8 months to legally bind the two companies. Personally, I think that Microsoft have the rights to buy out any company they want. This can also be applied to any other company because buying out your competition is a strong marketing scheme. This however is only my personal view towards this topic; it is up to the real world businessmen and share holders to decide for themselves.

Nadine said...

I think Microsoft should be allowed to buy yahoo, and if I were Jerry Yang, I would sell. Basically, yahoo is not what it used to be, and competing with Google, as the article said, is not something one company can do alone. A merge is important when it comes to this specific competition, and the two companies of yahoo and Microsoft I believe should come together if any have any hope of beating Google. I think the government should get involved in these mergers, but to a certain extent. Obviously a merger as large as this one is not going to be a simple process that concerns many legal issues that the government needs to oversee. If left to deal with it alone, these two companies might mishandle some issues and it may lead to corruption and other catastrophes. I think it will affect searching and advertising in a very dramatic way, considering these two companies both have their own important sites which they advertise in. When put together, the merged company will have the money and the power to advertise in more and more sites, maybe even beating Google and becoming No. 1.

mahmoud said...

If I was in his position I would wait, because as the world gets expensive everything ells does. I think that if Mr. Yang waits a little more maybe 4 to 5 years, he will get a better deal. I am not saying that the deal he already has is bad, but you never know what happens. Yes, Microsoft should have every right to do so; the government should not be an impediment. If the two companies merge, they will probably make an improved search engine

Anonymous said...

I think that he should probably take the 40 billion, however, there is a reason as to why they want yahoo--they see potential. If i was jerry yang, Id refuse, and instead, work on improving yahoo even more. Yahoo is very successful, but if another company is offering to pay you 40 billion dollars, then that kind of means something. Companies dont just pay that much for something they see as a failure, their profits are going to exceed 40 billion dollars. They were probably laughing at the guy when they made this offer, like yes we'll give you 40 billion dollars but that's only 1% of what we'll make. Jerry yang should definitely stay in the game and not give yahoo up. Microsoft is taking over everything.