Microsoft and Google are fighting for control of Yahoo!
Despite some good news on the results of financial activity in the third quarter, Yahoo! recently is in a dire situation, its performance is characterized by low stock prices, the high rate of reduction in the number of employees, unsuccessful attempts to develop products.
September 6 board of directors fired in the format of a call, Carol Bartz CEO (Carol Bartz) after a heavy fall of stocks, which reached the level of August 8 at $ 11.09, and now Yahoo!, reportedly on the lookout for potential buyers of your business.
The Wall Street Journal, citing people familiar with the matter closely, says that Microsoft is in talks about possible overall deal with the acquisition of Yahoo! institutional investors Silver Lake Partners and Canada Pension Plan Investment Board. At the same time Microsoft does not want to get Yahoo! to full ownership, and wishes through partial financial assistance to maintain some influence on the future of the company.
Yahoo! and Microsoft are strategic partners in the field of Internet search in 2008, after the proposal was rejected by the Redmond giant to acquire Yahoo! for $ 47.5 billion, the company’s market capitalization today is estimated to have $ 20.35 billion in the value of the shares at $ 16, 12. At the same time after the backstage preparations for the trading value of shares of the company for 3 weeks increased by more than 20%. Potential participants in the transaction believe that the actual value below the current capitalization of Yahoo, which includes a premium, reflecting investors’ expectations. Learn more about Stamp Bates To Emails just now!
Now the total bid in the auction could bring Microsoft a stake in the capital and management. Her contribution is likely to be several billion dollars, although the exact amount is not yet determined and will depend on the final price that the investment group will be able to offer Yahoo!. The latter, according to a source, has not yet received formal proposals, and its government is prepared to consider all options, including a complete sale of the company, the investment in exchange for the additional issue of shares or not to take any action.
The fact that Microsoft is seeking the support of Silver Lake, itself possessing the necessary financial resources, indicates that the corporation seeks to minimize the risk of failure of the transaction. Having preferred stock part, Microsoft will soon return investments than owners of ordinary shares and other investors.
Simultaneously, there were anecdotal evidence that the search company Google is in talks with at least two private investors, offering them financial assistance to acquire the core business of Yahoo!. According to sources, Google aims to advertise on websites Yahoo!, a monthly audience estimated at 700 million people.
The Wall Street Journal notes that negotiations are at an early stage, formal proposals have not yet worked out, and Google can not get the deal, also not clear which companies are involved in the discussion of the case. However, reports on the possible acquisition of its industry leading search defeated opponent rather intriguing, as a consequence of this will be the union of the two largest Internet companies, which should certainly attract the attention of the Antimonopoly Service, which will likely hinder the participation of Google in the bidding .
As interested parties, other than Google and Microsoft, the venture capital company called Andreessen Horowitz, the Chinese company Alibaba, employed in the field of electronic commerce, as well as AOL.