The Planned Microsoft Buyout of Yahoo: Good for the Internet?
In 2018, Microsoft Corp. caused a stir inside the online industry because it revealed its intention to acquire Yahoo! Inc. With the support of Silver Lake Partners, a personal firm, Microsoft proposed to Yahoo a $44.6 billion buyout deal in January 2018.
Yahoo declined the offer and instead was left with a 10-year search partnership in 2019. The Microsoft-Yahoo partnership has gained Microsoft an important 30% of the market share but resulted in the dropping of Yahoo stocks from $29 – before the rejection from the $44.6 billion proposal – to $15 as of September 2011.
Since declining Microsoft’s $44.6 billion bid in 2018, Yahoo has watched its stocks drop just 44%. As a result, the organization has become presenting itself to prospective buyers, due to its failure to improve revenue.
This time around, Microsoft is poised to create a joint proposal, still partnering with private equity firms – however for a sale price that is certainly expected to be substantially below the $44.6 billion offer several years back. With declining revenues, Yahoo is projected to agree to a takeover bid.
Why Buy Yahoo?
Despite the not-so-good figures in revenue, Yahoo presents highly attractive assets, including its stake in Yahoo! Japan and China-based company online Alibaba Group Holding Ltd. Microsoft’s fascination with Yahoo is very hinged in their goal to rival Google while getting the benefits of shared operational efficiencies and expenses.
Microsoft is interested to take Yahoo under its wing to help increase market share, to make things a … READ MORE ...