Shares of Yahoo soared following today's announcement that Microsoft made a bid for the company. Microsoft is offering $31 per share for Yahoo, which represents a 62% premium over Yahoo's previous closing price.
Microsoft is obviously hoping a Yahoo acquisition will allow it to compete more effectively against Google. Analysts are already debating whether or not the deal makes sense. However, other than the timing, there is really nothing surprising about the deal. As I pointed out last June (Speculating on a Microsoft and Yahoo! Deal) Susan Decker's promotion to president of Yahoo made a deal between Microsoft and Yahoo all the more likely. This is because Decker had also been recently appointed to Berkshire Hathaway's board of directors. Not coincidentally, Bill Gates, Microsoft's founder, also sits on the Berkshire board.
When all is said and done, Yahoo sharesholders should thank Warren Buffett for today's offer from Microsoft. After all, Buffett was instrumental in bringing together the major players in this deal.
Showing posts sorted by relevance for query speculating on a microsoft. Sort by date Show all posts
Showing posts sorted by relevance for query speculating on a microsoft. Sort by date Show all posts
Friday, February 01, 2008
Tuesday, June 19, 2007
Speculating on a Microsoft and Yahoo! Deal
Google (GOOG), one of my favorite overvalued stocks, is a great company. It dominates internet search and makes a bundle selling ads. Microsoft (MSFT) and Yahoo! (YHOO) haven't been able to compete. Will they finally team up to beat Google?
This is pure speculation, but there is reason to believe that Microsoft and Yahoo! will be cooperating more closely in the near future. Yesterday, Yahoo! announced that CEO Terry Semel is resigning. He is being replaced by founder Jerry Yang. But the most interesting part of the management shake-up is that CFO Susan Decker is being promoted to president. The media is already speculating that one day soon Decker will be named Yahoo!'s CEO.
Decker's promotion is key to a Microsoft deal. I say this because Decker was recently appointed to Berkshire Hathaway's board of directors. Warren Buffett's board also includes Microsoft founder Bill Gates. This arrangement will give Decker and Gates plenty of opportunity to get to know one another much better. They will primarily be discussing Berkshire business at Berkshire board meetings, but you can bet they will also have lots of time to strategize about how Microsoft and Yahoo! can work together to battle Google.
This is pure speculation, but there is reason to believe that Microsoft and Yahoo! will be cooperating more closely in the near future. Yesterday, Yahoo! announced that CEO Terry Semel is resigning. He is being replaced by founder Jerry Yang. But the most interesting part of the management shake-up is that CFO Susan Decker is being promoted to president. The media is already speculating that one day soon Decker will be named Yahoo!'s CEO.
Decker's promotion is key to a Microsoft deal. I say this because Decker was recently appointed to Berkshire Hathaway's board of directors. Warren Buffett's board also includes Microsoft founder Bill Gates. This arrangement will give Decker and Gates plenty of opportunity to get to know one another much better. They will primarily be discussing Berkshire business at Berkshire board meetings, but you can bet they will also have lots of time to strategize about how Microsoft and Yahoo! can work together to battle Google.
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