MediaFile

Yahoo to Microsoft: $teve, let’$ talk

Jerry Yang, Yahoo CEO and co-founder speaks at a keynote address at the CES in Las Vegas

“Dear Steve, it’s us, the Yahoo Guys again. Thanks for that whole deal deadline thing. Listen, our business is doing just fine. If you want to talk some more about acquiring us, $ay $omething we haven’t already heard, OK? Thanks. Jerry.”

The letter from Yahoo’s board released on Monday said the Web media company still isn’t pleased with Microsoft’s $31 a share offer, but hey, that doesn’t mean they can’t work something out, you know, for more money.

“We have continued to make clear that we are not opposed to a transaction with Microsoft if it is in the best interests of our stockholders. Our position is simply that any transaction must be at a value that fully reflects the value of Yahoo, including any strategic benefits to Microsoft, and on terms that provide certainty to our stockholders.”

Blogger Henry Blodget interprets the letter as essentially urging Microsoft to “Stop Distorting Truth” and “We’re happy to sell to you, but we’re not going to allow you to steal the company.”

(Reuters)

Keep an eye on:

    Yahoo’s AMP aims to simplify the process of buying and selling online ads for advertisers, ad agencies, fast-growing ad trading networks and Web site publishers. (Reuters) Viacom’s Sumner Redstone’s frayed relationship with his daughter makes the issue of who will succeed him as controlling shareholder – a question that hovers over the future of Viacom and CBS – difficult. (New York Times) Nielsen will acquire IAG Research, which measures how consumers react to TV shows, commercials and product placements, for $225 million. (PaidContent )

(Photo: Reuters file)

Yahoo, Microsoft game of chicken continues

ballmerwait2.jpgDeal brinksmanship or genuine threat? You be the judge.

The Wall Street Journal and Reuters reported on Tuesday that Microsoft has no intention of raising its bid to buy Yahoo beyond its initial offer of $31 per share in late January. And why would they, given that no credible counter offer has materialized.

Despite Yahoo co-founder Jerry Yang’s best efforts to court News Corp and AOL, and a road show with investors to talk up Yahoo’s future, most believe the deal remains Microsoft’s to lose.

Who are the winners in this long drawn out fight? Neither, Silicon Alley Insider’s Henry Blodget suggests. In this industry, the longer you wait, the further you trail.
(Reuters) (WSJ)

Yahoo: Here’s why we rejected Microsoft offer

yang2.jpgYahoo’s surprise three-year forecast announcement on Tuesday lays out why the Internet giant has refused to budge from its belief that Microsoft’s bid severely undervalues the company.

The Sunnyvale, Calif. company believes it can nearly double its operating cash flow to $3.7 billion and boost revenue, excluding payments to affiliates, to $8.8 billion. Built into the forecast is an expectation of $1.9 billion of additional revenue over three years in display video advertising revenue, outpacing market growth rates, Yahoo said.

It also reaffirmed previously issued first quarter and full year 2008 forecasts.

Wall St Poll-Microsoft nabs Yahoo, but at what price?

yahoo_hq_yahoo_car_kimberly_white_reuters_cropped.jpgThe latest data from a Reuters poll of Wall Street analysts who track either Microsoft Corp or Yahoo Inc, shows 28 of 30 analysts expect Microsoft to prevail in its unsolicited bid to acquire Yahoo, which is currently valued at $41.7 billion.

Fourteen analysts expect Microsoft to stand by its initial offer price of $31 per share in an equal mix of cash and stock. Four analysts expect Microsoft to keep offer at $31 per share but make all-cash offer, effectively raising the deal’s value.

Twelve analysts expect Microsoft to raise price to between $31.50 and $35 per share.