Microsoft Moves Closer To Acquire Yahoo: Signs An Agreement With Yahoo

Must Read

Skeletons in the Closet? Google-Facebook Involved in Secret Online Advertising Deal

If you can’t beat ‘em, join ‘em. And when two titans happen to decide upon an alliance,...

Smartphone Resale Value: Depreciation Is Surprising Enough [REPORT]

It's a tad cliché and true that smartphones have permeated every sphere of our life. The ceaseless...

“Open Up Cambridge Analytica, It’s CBI At the Door!”

Among all the establishments ensnared in deplorable acts, Cambridge Analytica has steadily climbed the ladder of infamy....

The issue has been fueled again; Microsoft has taken a step further towards Yahoo buyout by signing a confidential agreement. The agreement will help Microsoft management in gathering more information about Yahoo business, revealed by a source familiar with the matter. The move is being considered as a pre-buyout exercise to ensure the best gains for Yahoo as well as Microsoft.

According to Reuters, Microsoft has agreed to signed the agreement to make strong observation about Yahoo business and its future potential. Microsoft has joined hands with several private equity firms which are also looking over Yahoo’s year book and its operations.

Sitting on a cash pile of $57 billion, Microsoft is showing great interest to pocket Yahoo. However, such huge cash pile doesn’t guarantee the sole bid from Microsoft for Yahoo. It is also being speculated that Microsoft may go for Yahoo along with a joint partner. This lowers the risk as Yahoo’s market share in Internet industry is on constant decline for last few years and buying its 100% share may result in another MySpace – News Corp deal in future.

Advertisements

Microsoft intention to buy Yahoo is quite clear; Company had made an unsuccessful attempt to  buy Yahoo in 2008. Deal fell apart due to Yahoo’s higher cost-per-share expectations. However, the situation is quite different now. Yahoo’s open market shares are floating at just half of the cost since 2008 and company is facing constant market decline with every passing quarter. Its Senior Executives have left the company and many have been fired by the companies’ authority. All such aspects setup a perfect favorable platform for Microsoft to grab Yahoo.

However, there is several other private equity firms like KKR and TPG who have also signed confidential agreement with Yahoo and are looking to buy 20 percent of Yahoo shares in coming days, as per Reuters. Reports are also there about AOL who is keen to have controlling stake in Yahoo.

one of the most prominent private equity firm Silver Lake has also signed a nondisclosure agreement with Yahoo to restrict other groups to have tie-up with them. However, many of the equity firms have criticized Yahoo for pushing such NDA.

It’s an interesting fact to know that despite of unsuccessful attempt to take over Yahoo in 2008, Microsoft has not lost its hopes. They signed a deal with Yahoo in 2009, which allows Microsoft Bing to power Yahoo search results and provide Microsoft a 12 percent of ad revenue of Yahoo. Also, both the companies have settled down on another deal for advertisement few weeks back.

This shows that Microsoft never left the hope to conquer Yahoo and silently moving closer to grip Yahoo with a perfect sense of its business model. What do you think about such possible buyout of Yahoo to Microsoft ? Do share your views with us in comment box.

Advertisements

2 COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Why Is Retargeting Touted As A Secret Weapon For Success By Online Marketers

You know that ads play an important role in driving people to your website if you run...

Happy B’day Chad Hurley: The Co-Founder Of The World’s Largest Video Library

Chad Hurley never cared about success, he mended his ideas and tried to garner the fruits from those. But not every time...

Encouraged By Record Profit of RIL, Ambani Wants To Accelerate 5G Arrival in India

Brace yourselves for the sooner-than-anticipated arrival of  Reliance Jio 5G services because the 63-year-old billionaire tycoon Ambani recently pledged to the speedy launch...

How Mobile Is Becoming A Catalyst Of Online Gambling Market Growth

The global online gambling market is now one of the biggest and it is expected to grow up to 127.3 billion US...

“Open Up Cambridge Analytica, It’s CBI At the Door!”

Among all the establishments ensnared in deplorable acts, Cambridge Analytica has steadily climbed the ladder of infamy. The roots of its malice...

Smartphone Resale Value: Depreciation Is Surprising Enough [REPORT]

It's a tad cliché and true that smartphones have permeated every sphere of our life. The ceaseless tech breakthroughs have led to...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This