blogonawire

Microsoft CEO Steven Ballmer is clearly tired of Yahoo rejecting the Microsoft buyout proposal. In efforts to move the process along, he has sent a letter to Yahoo Board of Directors stating that Yahoo’s board will have 3 weeks to reach an agreement with Microsoft, or Microsoft will take actions to replace the Yahoo Board of Directors and a Hostile take over will ensue.  Last year Yahoo’s revenue was about 6.9 billion, which is dwarfed by the 51 billion earned by Microsoft. With plenty of available cash and a hunger for a share of the 72 billion dollar online advertising industry, Microsoft just isn’t taking no for an answer. With Microsoft offering a high premium on Yahoo’s current market value, Yahoo shareholders are likely to side with Microsoft. So while Yahoo will continue to try and resist, all they can really hope for at this point is a higher offer from Microsoft. Either way, it’s really only a matter of time.

According to the news.com article [below], Microsoft wants to get this done and approved by the DOJ before President Bush leaves office [presumably Microsoft fears  that a possible democratic president and Department of Justice would be less inclined to approve the merger].

http://www.news.com/8301-10784_3-9912349-7.html

In other news, Google recently sent a letter to shareholders asking for permission to issue an additional 6.5 million shares, which at a current market value of $475 per share, would net them an additional $3+ billion dollars. Add that to the 3+ billion Google has in available cash, and they have a pretty substantial pocketbook. What kind of shenanigans is Google planning?