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Who Will Own The Yahoo Inc.?

posted by admin in February 10th, 2008  Article Under: Business, News   Tags: , , , , , ,   

Today, the most anticipated deal in the business world is the proposal of Microsoft to get the second internet search competitor- Yahoo Inc. Yahoo has failed to crack Google’s dominance, at the same time plans to reject a $44.6 billion takeover bid from Microsoft Corp. - said a source about the situation.

New York (Reuters) - Yahoo Inc. The internet media giant is expected to reject Microsoft’s offer on Monday as undervaluing the business. Yahoo’s shares have fallen, but Yahoo’s websites will remain as the world’s most popular.

Who Will Own The Yahoo Inc.?

The board has spent about a week in reviewing the $31-per-share offer. The Yahoo directors are likely to reject it. Yahoo expects a minimum of $40 - reported by the Wall Street Journal.

Yahoo can also look other bids or partnerships with Google or Rupert Murdoch’s News Corp. to thwart Microsoft”. – says Clayton Moran, analysts from Stanford Group Co.’s.

The Deal Is On the Process

Microsoft may raise its bid, so that it becomes easier for Yahoo co-founder and CEO Jerry Yang to accept it. Microsoft CEO Steve Ballmer was met by one of the major investor in Yahoo to know if Microsoft would be willing to raise the offer. – reported by the New York Post.

Microsoft is aware that the Yahoo Inc., doesn’t have any other options and Microsoft wants to wait to get this deal done.” - said Scott Kessler an equity analyst in New York.

Our company doesn’t comment on speculation”. - said Diana Wong, Yahoo’s spokeswoman.

The Google’s Interest

Yahoo management had talks with Google as an alternative to Microsoft’s bid; Yahoo believes that Microsoft undervalues the company. Jerry Yang the co-founder of Yahoo may look to outsource to Google, but such other options may emerge Microsoft to make a higher offer to win.

Google search engine and Advertising Company has around 75 percent of search revenues, and it continues to grow on the web. “Competition on the web may get undermined with the combination of Microsoft and Yahoo, so the policy makers need to challenge the combination”. – said David Drummond, Google’s chief legal officer.

Google has a 75 percent share of worldwide web search revenue. Yahoo and Microsoft can get around 20 percent of internet searches. - A statement given by Microsoft executives. Google knows the internet market with the combination of Yahoo and Microsoft would create number two competitor for internet search and advertising to Google.

Google CEO Eric Schmidt contacted Yang for making a partnership”. - reported by the New York Times.

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