This was made known by the company’s CFO Chris Liddell in a briefing to Wall Street analysts.
All Posts Tagged Tag: ‘Microsoft-Yahoo Deal’
Relations between Microsoft and Yahoo may sour as a result, but it’s a good bet Yahoo execs are going to brag a bit about a new hire. It seems a Microsoft executive charged with working on the companies’ search alliance is switching sides. Kara Swisher reported earlier this morning, “[Brett] Wayn must have liked what he saw at the Silicon …
Australia, Brazil, and Mexico have populations of 22.5 million, 190.7 million, and 112.3 million people, respectively. Which adds up to 325.5 million potential users, all in all. It’s a big deal, then, that the Bing-Yahoo search transition progressed in these three countries today.
The last step of transitioning Yahoo Search Marketing accounts to the Microsoft Advertising adCenter platform will begin (much) sooner rather than later. Yahoo announced late yesterday that the process could in fact start on Monday, and the deadline for completion is the last week of this month.
That means things are continuing to run on – or even ahead of – Yahoo and Microsoft’s original schedule, which is good news for both companies. They should begin to realize the predicted cost savings in short order as a result.
Although it’s unlikely that anyone’s printing up new business cards just yet, it looks like Microsoft and Yahoo have decided how to deal with the post-partnership personnel situation in at least one country. According to a Yahoo exec, about 200 of Yahoo’s engineers in India will switch companies.
Now that Yahoo and Microsoft have received DoJ and EU approval on their search and advertising deal, Yahoo is doing plenty of talking about what the deal will mean for its search engine and its advertisers.
The two companies have a Search Alliance page set up that gives some insight about what to expect, such as:
UPDATE: As stated in a press release a Microsoft representative emailed to WebProNews, "Microsoft (Nasdaq ‘MSFT’) and Yahoo! (Nasdaq ‘YHOO’) announced today that they have received clearance for their search agreement, without restrictions, from both the U.S. Department of Justice and the European Commission, and will now turn their attention to beginning the process of implementing the deal."
Here are a couple of simple facts: Microsoft’s online services business lost $466 million during the last financial quarter, and most research firms put Google’s share of the search market at least 45 percentage points above Yahoo’s. Still, Microsoft believes Bing can be competitive and profitable.
We’ll admit it: so far, most conversations concerning the Microsoft-Yahoo deal and antitrust issues have related to the U.S. and Europe. Still, two potential roadblocks were eliminated yesterday when the Australian Competition and Consumer Commission and the Canadian Competition Bureau signaled their intent not to oppose the partnership.
Microsoft’s CEO isn’t getting ahead of himself; for the time being, Steve Ballmer’s taking a "first things first" approach. However, he indicated today that if the proposed U.S.-only Microsoft-Yahoo search partnership goes through, an international agreement may follow.
Another noteworthy event in the long, strange tale of the Microsoft-Yahoo deal has occurred: about 15 months after securing his seat on Yahoo’s board of directors, Carl Icahn has resigned the position.
It’s important to note that the move isn’t supposed to be interpreted as the first step in starting another fight. Or even as a sign of disapproval. In fact, in a letter announcing his resignation, Icahn made it sound more like a case of "mission accomplished" and "time to move on."
It would seem that everybody who’s anybody in the advertising industry wants the Microsoft-Yahoo deal to go through. Today, the president and CEO of the American Association of Advertising Agencies, along with the heads of all four major ad holding companies, signed her name to a letter of support.
The Yahoo search experience might at some point change in a very surprising way. That Bing may take over, we’ve come to accept. But at least one high-ranking Yahoo employee thinks Google could get a shot, too.
Let’s talk about said employee for a moment. Burke Culligan is the senior director of product planning and strategy over Yahoo’s front page and My Yahoo, so he’s in a good position to discuss significant adjustments. Also, Culligan’s worked for Yahoo since October of 2005, so it’s not like he’s some newbie who doesn’t know the score.
Even though the combined search market shares of Microsoft and Yahoo won’t approach Google’s stake in terms of size, the Justice Department isn’t giving their proposed deal a free pass. In fact, the government entity’s decided to ask Microsoft and Yahoo for more information.
Maybe Yahoo’s deal with Microsoft was a smart move, after all. RBC analyst Ross Sandler has stepped forward to say that it’ll have a positive financial effect on Carol Bartz’s company, boosting certain figures significantly above forecasted levels.
Although Microsoft and Yahoo (finally) announced a partnership one week ago, it seems that the deal is far from unbreakable. Indeed, Yahoo’s shared a few details with the S.E.C., and there are a number of interesting termination provisions attached to the arrangement.
The first can kick in if much more heel-dragging occurs, or more specifically, "if the conditions to commencement have not been satisfied by July 29, 2010." Which is a nice sign that this won’t still be under discussion come doomsday.
Personnel-related "efficiencies" can be good or bad, depending on one’s perspective. Companies want to save money, of course, and their shareholders also appreciate savings. But employees like to keep their jobs. So let’s take a look at what sort of effect the Microsoft-Yahoo deal may have.
According to a statement Carol Bartz issued this morning, the new Yahoo-Microsoft deal "comes with boatloads of value for Yahoo, our users, and the industry." But a significant number of Yahoo’s (former) investors apparently didn’t believe that line, and have sent the company’s stock into something of a tailspin.
The man who once seemed set to single-handedly force a Microsoft-Yahoo acquisition – and then settled for three seats on Yahoo’s board of directors, instead – is at it again. Carl Icahn’s spoken in favor of a search partnership between the two companies.
First off: yes, at this point, we’re all ready to slap Steve Ballmer and Carol Bartz with a fish every time they talk about a partnership or acquisition. Just the same, millions of dollars are at stake, so it seems important to acknowledge that Ballmer’s once again said he’s open to a deal.
Everyone – and we know there must be a lot of you – who would rather not hear more about potential Microsoft-Yahoo deals should get ready to abandon the Internet for a little while. It looks like a fresh round of rumors is on the way, led by a report that the two companies are discussing partnerships.
Interestingly, Steve Ballmer and Carol Bartz are supposed to be personally involved, which implies that some rather high-powered negotiations are taking place. But it’s been said that a flat-out acquisition isn’t on the table this time.
Delaware Chancery Court Judge William B. Chandler III apparently doesn’t love the idea of poison pills. A settlement he approved would make it much less expensive – and therefore much more appealing – for a company to acquire Yahoo.
Does Carol Bartz have the magic touch? It’s either that or she inherited something less than a complete mess from Jerry Yang, anyway, because as Yahoo’s new CEO presided over her first earnings report, many of the numbers weren’t at all bad.
As part of its plan to make an acquisition extremely unpalatable to Microsoft, Yahoo adopted a poison pill severance plan six months ago. Now, for the sake of satisfying some shareholders who sued it, Yahoo has made it slightly easier for a new owner to fire employees.
Ivory Investment Management can’t order anyone to do anything. Since it’s only in control of 1.5 percent of Yahoo’s stock, Ivory may not even be able to make suggestions using a loud voice. Still, the investment firm is adding to all the previous Yahoo-Microsoft mess by recommending a sale of Yahoo’s search business.
Even the harshest critics of Steve Ballmer will have to admit one thing: in regards to not buying Yahoo, he’s been consistent for a long time now. At a shareholder meeting today, Ballmer said that he still has no interest in a total acquisition, and Yahoo’s stock has taken a nosedive of around 20.9 percent as a result.
Earlier this week, Jerry Yang insisted that it’s in Microsoft’s best interest to buy Yahoo, and that he doesn’t regret any of what’s transpired. We compared him to Monty Python’s Black Knight character. Now, Steve Ballmer seems to have pulled a King Arthur and walked away from the whole mess.
Jerry Yang’s facing all sorts of problems, and his own words may be digging him a little deeper. According to what Microsoft’s general counsel told a Senate antitrust panel, Yang recently admitted that Yahoo’s deal with Google will more or less create a search monopoly.
Microsoft and Yahoo both employ intelligent, well-educated men and women. Carl Icahn’s pretty sharp, too. Recent acquisition dealings seem to have turned a great many people into finger-pointing fifth graders, though, and there’s been another salvo of letters and statements to support this argument.
Yahoo formally rejected a proposal from Microsoft and Carl Icahn in a statement issued on Saturday.
They had been given 24 hours to reach a decision by Microsoft CEO Steve Ballmer on Friday night. They reached a decision, but probably not the one that Ballmer and Icahn were looking for.
Yahoo says that its advertising deal with Google offers "superior financial value, reports Kyung Bok Cho at Bloomberg.
A certain tradition involving Charlie Brown, Lucy, and a football began over 50 years ago. Now, as Yahoo has once again claimed it’s open to the idea of an acquisition, it’s beginning to look like Steve Ballmer and Jerry Yang might set some record of their own.
As things stand, Microsoft claims to be done negotiating with Yahoo. But Redmond’s best-known corporation has announced that it is willing to reenter acquisition talks if Carl Icahn wins his proxy fight.
Suppose that Steve Ballmer and Jerry Yang miraculously agreed on something: the sale of Yahoo’s search department. A new Hitwise report sorts through the pile of properties that would remain, and as it turns out, the leftovers look pretty tasty.
Thoughtful, objective people tend not to shout "no" before others can even pose a question. Jerry Yang’s looking less than neutral, then, as newly released documents show that he prepared to reject an acquisition bid long before the latest one was presented.
It’s a common negotiation tactic: go to the dealership, look at a car, and leave. The dealership may drop the price when you come back, and if it doesn’t, there are other cars, anyway. But according to Bill Gates, Microsoft isn’t pulling this stunt with Yahoo.
Recounting the recent Microsoft-Yahoo stuff would be a waste of space; we all know what happened and who was involved. One name rarely came up, though, and in case anyone was wondering what Bill Gates thought about the outcome, well . . . he doesn’t seem to have lost sleep over it.
Rumor has it that, if Microsoft is successful in acquiring Yahoo, many Yahoo employees will promptly quit in order to receive at least four months’ (and up to two years’) worth of severance pay. Now, to make sure some people stick around, it seems Microsoft will spend $1.5 billion.
According to the latest Hitwise stats, Google is continuing to marginalize both Yahoo and Microsoft in terms of search share. But if you take Google out of the equation and look at a few other areas, the two companies’ numbers are really pretty impressive.
In the olden days, armies often didn’t attack castles so much as sit around them; weeks or months later, the defenders would run out of food and their leaders would have few options other than to surrender. Yahoo may be placing itself in a similar situation in its fight against Microsoft.
Look for Jack Ma’s Alibaba to become part of the Microsoft-Yahoo discussions due to Yahoo’s sizable stake in the company.
Some Wall Street analysts think the alternatives available to CEO Jerry Yang could give Yahoo the boost its shareholders crave, while keeping the company out of Microsoft’s clutches.
Breaking … According to reports Yahoo has rejected Microsoft’s $44.6 billion offer and plans to write a letter to Microsoft on Monday outlining its objections.
The Wall Street Journal reports that a Yahoo source says that the Board felt that Microsoft was trying to "steal" the company. The same source stated that Yahoo wouldn’t consider an offer below $40 per share which would cost Microsoft another $12 billion.
Still jonesin’ from last Friday’s Microsoft/Yahoo buzz hysteria, there are reports that Yahoo could end this Friday with a major announcement, giving us all something to talk about over the weekend. Whether that happens or not, it’s clear that Yahoo doesn’t have much more time to make a decision.
Hitwise has a look at the visitor statistics for Yahoo and Microsoft’s websites, showing just how much market share in the United States the combined company would have.
Total market share for all Yahoo is 13.2% of all of U.S. internet traffic, with MSN having just 2.4% and Google 7.7% Combined, they would have 15.6%, over twice as much as Google.
One publication opined Microsoft’s offer for Yahoo may be a way to draw Google’s business to the attention of antitrust authorities.
Do you really have any idea how big Yahoo is, or hell, how big MSN is?
There’s a lot of overlap between the two, and Long Zheng & Josh Philips have been kind enough to generate a nice chart to show the two. The chart is reproduced below, with some notes added by me regarding what I think about which service will be rolled into the other.
Over the weekend Google tried to thwart the attempt by Microsoft to takeover Yahoo!, by being quite vocal about the concerns, see Official Google Response: Microsoft’s Bid On Yahoo! "Hostile".
Given the hue and cry about Yahoo!’s expected layoffs and its less than perfect market performance in Q4, the word about the possible bid by Microsoft had already been in the air, which has now been translated in to a reality. Would the deal eventually materialize or not?