The best defense is a good offense. If Yahoo Inc. (NASDAQ: YHOO) does not like Microsoft (NASDAQ: MSFT)'s buyout offering price of $31 per share and Microsoft insists this is a fair price, then Yahoo should turn the tables on the software giant and buy its internet search and advertising assets at a similar valuation. Since it is smaller, it should cost less. If this is too big for Yahoo to swallow, then they could do it with a partner -- would Mr. Murdoch have an interest in this? Or maybe Mr. Diller or Mr. Malone would?
Another possibility would be to forget about an acquisition strategy and think merger!
The idea I like best is for Microsoft to spin out its internet assets and merge them with Yahoo's. I think this approach would add value to Microsoft, the cash machine, and create a new, larger, independent internet competitor for Google Inc. (NASDAQ: GOOG). If it were independent from Microsoft, it may also facilitate on the deal's acceptance as far as antitrust issues are concerned. If Murdoch's News Corp (NYSE: NWS) took an interest, then MySpace could be added to the mix. It would be a very strong company.
Sheldon Liber is the CEO of a small private investment company and the design and research principal for an architecture & planning firm. Disclosure: I do not own shares of GOOG, MSFT, NWS or YHOO.
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Reader Comments (Page 1 of 1)
2-11-2008 @ 4:24PM
EBossmanearl said...
Microsoft should tell Yahoo the deal is now off and let teh stock drop back to the bottom. They could start again spending less money to buy back the shares from indivivuals. Microsoft could on the first week buy back the shares at say $31.00 The second week they could buy back the shares at $30.00. This process could go on for weeks
2-12-2008 @ 10:03AM
kirk brooks said...
you don't payout 45 billion dollars and not be classified as a monopoly. where the hell is are government regulators. someone needs to get off their dead asses and see whats going on around them. we are slowly heading towards the doctor syndrome. everyone is a specialist. haven't you all learned yet what a specialist cost. let them buy them out and see what it cost you later! greed eats greed will be the headline.
2-12-2008 @ 12:20PM
Nick said...
Microsoft stock has done almost nothing, and Yahoo had done nothing but go down prior to this offer. Please let go of this dog Yahoo and try to improve your own company. I don't know how overpaying will do anything for your shareholders at least not for the foreseeable future.