Last week, Microsoft signed an agreement with Yahoo! which said that Microsoft was again planning to purchase the online giant, which is struggling, to say the least. This was a major turn-around for both companies: Microsoft said that they were happy that their previous bid for Yahoo! last year was turned down, and Yahoo!’s CEO Carol Bartz (who was fired by Yahoo!’s board) promised to fend off the seemingly inevitable purchase of the company. Microsoft’s offer back then was a very, very generous offer of $31 per share. Yahoo stock opened at 15.60 today.
But why would Microsoft want Yahoo!? There’s no question that Yahoo! is struggling. A probably wiser choice is to just purchase Yahoo!’s good products, like Flickr or “omg!” or Travel, or something like that. But then again, if Microsoft bought all the good products at Yahoo!, what would be left? Mail? If they were to buy all the good products, it might well be really close to the price of purchasing the whole company, so for a few billion more dollars Microsoft could get the rest.
Maybe Yahoo! should split up into littler companies.
Maybe AOL and Yahoo! should merge.
What do you think?