Sunday, April 13, 2008

Microsoft, News Corp. Team Up in Unholy Agreement

It's all about Dealing and Fighting in the end,in my opinion.. Should people worry about Myspace?Microsoft joint? Let us check :
Microsoft moved rapidly in response to yesterday's news that Yahoo is closing in on a deal with AOL. The software giant is reportedly joining forces with News. Corp. to submit a joint offer for Yahoo.
Under the agreement, News Corp. would buy Yahoo, and the three companies(Microsoft, Yahoo and News Corp.)& would combine their online assets, which include MSN, Yahoo and MySpace. The Times says "it's a shift in strategy for News Corp. CEO Rupert Murdoch, who reportedly met with Yahoo CEO Jerry Yang early on and offered to help fend off Microsoft."
Under the terms of the Yahoo-AOL deal, Time Warner would risk off AOL assets (excluding the dialup ISP) on Yahoo, & put a cash investment in the combined company, and take a 20% equity stake in it.Yahoo would use the Time Warner cash to buy back a few billion dollars in stock to drive the share price back up, thus possibly quiet sulky investors.

But still not sure and clear that the AOL agreement would do much to satisfy unhappy investors. Yahoo will still be affected by the same problems that it had before the Microsoft takeover bid. The winning of AOL = 10 billion $! thats a quiet huge amount of profit!!!
"We think shareholders would prefer to cash out via a Microsoft offer — with or without News Corp. — rather than keep Yahoo in the hands of current Yahoo management with the addition of a troubled asset called AOL," says Laura Martin, an analyst with Soleil-Media Metrics. "I think Yahoo management has lost its credibility in terms of execution and strategy — not just because of its operational weakness, but also because of how they have handled the Microsoft bid."
Steve Ballmer that served Yahoo with an ultimatum says that if the deal is not done before 3weeks as a deadline of 26April,Microsoft will launch a proxy battle to take over Yahoo's board.
I wish they will agree on the deal and finish before the deadline unless A Battle will start all over the place :S! Anyways, Ill keep you people Updated!

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