Yahoo hostile Takeover by Microsoft

February 01, 2008 Microsoft announced a hostile takeover bid for the stock of Yahoo for $44.6 billion U.S.

Microsoft has discussed buying Yahoo for a number of years and the Yahoo was not interested in being owned by Microsoft under the terms Microsoft was setting. Therefore, microsoft has finally said we will take you over (buy you) without your agreement. Microsoft is starting a process in the stock market in which they will try and purchase control or over 50% of the stock to take control of Yahoo.

Yahoo will explore other opportunities to merge with another company or be bought by an other company. The board of directors of Yahoo will try and work on behalf of the shareholders (people who own the stock and therefore own the company) to get the best deal for the stock. It it is sold the board wants to support the best deal for the company.

Google is getting involved as they have a lot at stake. They don’t want Microsoft to strengthen their postion on online advertising, e-mail accounts and instant messaging. There is the possibility of Yahoo and Google working together to prevent Microsoft from taking control of Yahoo.

More to come as this business case develops!