Live: Microsoft Wants Yahoo

    February 1, 2008

These are live notes from the Microsoft press conference announcing their offer to purchase Yahoo.

Microsoft CEO Steve Ballmer:

>> We see this announcement as significant. This is a milestone for Microsoft’s Online ventures.

>> Last night I called Jerry Yang to discuss the proposal. I think Yahoo should be excited about this offer.

>> There are now several steps we will both need to take to move this proposal forward.

>> We believe in the benefits of combining these two companies… now more than ever.

Chris Liddell:

>> The offer is a mix of 50% cash and 50% equity.

>> Looking to close the transaction in second quarter of 2008

>> We see the opportunity to drive 100% synergies.

>> The real opportunity is to drive increased long term shareholder value.

Q & A (Microsoft Answers only)

>> It’s about scale economics.

>> Scale matters. Some things are short term and others will be longer term.

>> This business will have different economics than Windows. You can’t relate this to that economic model.

>> Clearly, we believe the offer is a very attractive one from the Yahoo shareholder perspective.

>> Any number of companies might have an interest. We have been getting unsolicited feedback from publishers that this will create a more competitive number two in the marketplace.

>> Google is clearly prevented from attempting to buy Yahoo do to antitrust laws.

>> This will drive more investment in social media elements for search.

>> There is nothing quite like putting together two great R&D organizations. This should be quite an accelerate to growth.

>> We have clear line of sight to the synergies.

>> The Windows experience needs to increasingly embrace the Internet. Office will be transformed by the Internet.

>> A team from both companies will look into the synergies.