At a conference in Israel, Steve Ballmer said, according to Reuters, that Microsoft offered to buy Yahoo’s search business and take a minority stake in the rest. “We are not bidding to buy Yahoo,” Ballmer said at the launch of Microsoft’s new research and development centre in Israel. “Yet, we are trying to have discussions about deals with Yahoo that might create value, but not a whole acquisition of the company,” he said without elaborating further.
Yahoo has said it was considering a “number of value maximizing strategic alternatives” and would evaluate any proposal made by Microsoft. It is not at all clear that Microsoft’s offer will placate Carl Icahn who last week launched a proxy battle in order to pressure Yahoo to agree to be sold to Microsoft. A number of other large Yahoo shareholders have since said they would back Icahn.
Icahn believes that the $33 per share that Microsoft offered was a good deal for Yahoo shareholders. It seems unlikely that any deal currently on the table would place such a high value on Yahoo.
Separately, rumers keep circulating that Microsoft would like to buy Facebook. As we reported earlier, Microsoft’s existing minority interest in Facebook vales the company atvover $10 billion. The GoogleGazer does not think Microsoft will be willing to make such a large investment, as it would dilutive to its earnings, but perhaps they will take a larger stake in return for some exclusive deals.
The GoogleGazer, on behalf of pundits everywhere, expresses its thanks to Steve Ballmer and Jerry Yang for giving them us all something juicy to write about every day.
Filed under: Google, Microsoft, Yahoo Tagged: | Carl Icahn, David Sarna, Facebook, Microsoft, Yahoo
