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Yahoo! Mulling Tie with News Corp
Techtree News Staff, Feb 14, 2008 2046 hrs ISTReportedly, Yahoo! is not willing to consider anything below $40 per share, which means a valuation of nearly $56 billion
Exactly what is Yahoo! up to? The latest buzz is it's mulling a partnership with the world's largest media conglomerate News Corp.
Yahoo! believes it's worth more than the $31 per share value that Microsoft has declared its willingness to dish out. It's been a while now since Yahoo! famously rejected Redmond's $44.6 billion bid, alleging that the offer "substantially undervalues" assets that include one of Internet's biggest audiences and best-known brands. Reportedly, Yahoo! is not willing to consider anything below $40 per share, which means a valuation of nearly $56 billion.
The London Times has even reported (without quoting sources) that Yahoo! is now exploring merger talks with Time Warner's AOL as well as with Google or Walt Disney. Apparently, the earlier discussions between Yahoo! and AOL had failed due to differences over valuation.
Morever, Yahoo! itself has said in a statement that its Board will continue to evaluate all "strategic options" in the light of a rapidly evolving industry to maximize value for its long-term stakeholders.
So where does a partnership between Yahoo! and News Corp figure?
Some analysts are of the opinion that such an alliance might help Yahoo! escape from Microsoft's clutches, or that the very idea of such an alliance might prompt Microsoft to raise the value of its takeover bid. Others are more sceptical, saying that the alliance could be of long-term strategic value to Yahoo!, but that shareholders would not see as immediate an investment return as with Microsoft's offer. Some go so far as to say that there's no option for Yahoo! but to accept Microsoft's offer.
A source familiar with the Yahoo!-News Corp discussions has been quoted as saying that details of the proposed partnership are in the process of being worked out. Even News Corp. is interested, it seems, in folding its popular social networking Web site MySpace.com, plus other Internet properties into Yahoo!. Some analysts,
However, there's no official comment from News Corp. yet.
Meanwhile, Yahoo! has gone and announced its "OneConnect" service at the Mobile World Congress in Barcelona. Designed as a tool to enable mobile phone users to aggregate their social networking updates and messaging in one location on their phones, OneConnect works by integrating directly into a phone user's address book, then allowing people to share status updates and messages from a variety of messaging and social networking platforms.
At the launch, Marco Boerries, executive vice president (Connected Life) of Yahoo!, said OneConnect should be able to run on most mass-market phones that have a browser. He said Yahoo! is working on versions of OneConnect for Apple's iPhone and RIM's BlackBerry. Incidentally, OneConnect is accessible from any Internet browser through Yahoo! Go 3.0.
And as if more proof were required that Yahoo! remains (on the face of it) unfazed by Microsoft's hostile bid, the company also announced completing an acquisition of its own earlier this week -- that of online video service Maven Networks, for a whopping $160 million. This is clearly Yahoo!'s attempt at expanding its online advertising network, and snapping out of the two-year glut that has landed it in this position (Microsoft did make an offer, however hostile) in the first place.
For those not in the know, Maven Networks helps television- and movie- studios find Web sites to show off their videos, as well as manage accompanying adverts. A six-year-old start-up, the company works with several media outlets, including CBS Sports, Gannett, News Corp, Hearst, and Sony Pix.
All said, while Yahoo! continues to give the impression that it's business as usual, a determined Microsoft hasn't given up. The company has said out loud that it won't budge from its original offer, which it maintains is "full and fair".
Even analysts know better than to rubbish Microsoft's ultimately taking over Yahoo! They feel grabbing Yahoo! is the best way ahead for the software giant -- especially to be able to fight Google's growing dominance in online search and advertising. No wonder a majority of them are betting on Yahoo! finally ending up in its suitor's arms.
So while Microsoft chooses to be determined, Yahoo! has chosen to remain stubborn...
In the latest twist to this long story, Yahoo! CEO Jerry Yang is believed to have sent a letter to all of the company's stockholders in an attempt to reassure investors of the company's unchangeable stance on the Microsoft deal.
"Today, Yahoo! is a faster-moving, better-organized, more nimble company than it was just a few months ago. We have redeployed our resources to drive Yahoo!'s key strategic priorities -- taking important steps to streamline our organization, and close down or scale back businesses that don't support these critical growth initiatives. We are well on our way to transforming the experiences of Yahoo!'s users, advertisers, publishers, and developers -- an important shift that is at the heart of our plan to create stockholder value," Yang's letter reads.
Yahoo! believes it's worth more than the $31 per share value that Microsoft has declared its willingness to dish out. It's been a while now since Yahoo! famously rejected Redmond's $44.6 billion bid, alleging that the offer "substantially undervalues" assets that include one of Internet's biggest audiences and best-known brands. Reportedly, Yahoo! is not willing to consider anything below $40 per share, which means a valuation of nearly $56 billion.
The London Times has even reported (without quoting sources) that Yahoo! is now exploring merger talks with Time Warner's AOL as well as with Google or Walt Disney. Apparently, the earlier discussions between Yahoo! and AOL had failed due to differences over valuation.
Morever, Yahoo! itself has said in a statement that its Board will continue to evaluate all "strategic options" in the light of a rapidly evolving industry to maximize value for its long-term stakeholders.
So where does a partnership between Yahoo! and News Corp figure?
Some analysts are of the opinion that such an alliance might help Yahoo! escape from Microsoft's clutches, or that the very idea of such an alliance might prompt Microsoft to raise the value of its takeover bid. Others are more sceptical, saying that the alliance could be of long-term strategic value to Yahoo!, but that shareholders would not see as immediate an investment return as with Microsoft's offer. Some go so far as to say that there's no option for Yahoo! but to accept Microsoft's offer.
A source familiar with the Yahoo!-News Corp discussions has been quoted as saying that details of the proposed partnership are in the process of being worked out. Even News Corp. is interested, it seems, in folding its popular social networking Web site MySpace.com, plus other Internet properties into Yahoo!. Some analysts,
However, there's no official comment from News Corp. yet.
Meanwhile, Yahoo! has gone and announced its "OneConnect" service at the Mobile World Congress in Barcelona. Designed as a tool to enable mobile phone users to aggregate their social networking updates and messaging in one location on their phones, OneConnect works by integrating directly into a phone user's address book, then allowing people to share status updates and messages from a variety of messaging and social networking platforms.
At the launch, Marco Boerries, executive vice president (Connected Life) of Yahoo!, said OneConnect should be able to run on most mass-market phones that have a browser. He said Yahoo! is working on versions of OneConnect for Apple's iPhone and RIM's BlackBerry. Incidentally, OneConnect is accessible from any Internet browser through Yahoo! Go 3.0.
And as if more proof were required that Yahoo! remains (on the face of it) unfazed by Microsoft's hostile bid, the company also announced completing an acquisition of its own earlier this week -- that of online video service Maven Networks, for a whopping $160 million. This is clearly Yahoo!'s attempt at expanding its online advertising network, and snapping out of the two-year glut that has landed it in this position (Microsoft did make an offer, however hostile) in the first place.
For those not in the know, Maven Networks helps television- and movie- studios find Web sites to show off their videos, as well as manage accompanying adverts. A six-year-old start-up, the company works with several media outlets, including CBS Sports, Gannett, News Corp, Hearst, and Sony Pix.
All said, while Yahoo! continues to give the impression that it's business as usual, a determined Microsoft hasn't given up. The company has said out loud that it won't budge from its original offer, which it maintains is "full and fair".
Even analysts know better than to rubbish Microsoft's ultimately taking over Yahoo! They feel grabbing Yahoo! is the best way ahead for the software giant -- especially to be able to fight Google's growing dominance in online search and advertising. No wonder a majority of them are betting on Yahoo! finally ending up in its suitor's arms.
So while Microsoft chooses to be determined, Yahoo! has chosen to remain stubborn...
In the latest twist to this long story, Yahoo! CEO Jerry Yang is believed to have sent a letter to all of the company's stockholders in an attempt to reassure investors of the company's unchangeable stance on the Microsoft deal.
"Today, Yahoo! is a faster-moving, better-organized, more nimble company than it was just a few months ago. We have redeployed our resources to drive Yahoo!'s key strategic priorities -- taking important steps to streamline our organization, and close down or scale back businesses that don't support these critical growth initiatives. We are well on our way to transforming the experiences of Yahoo!'s users, advertisers, publishers, and developers -- an important shift that is at the heart of our plan to create stockholder value," Yang's letter reads.
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(3) Comments
Sunny Doiphode
,Mumbai, on Feb 15, 2008 09:54 AM
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