YAHOO TO REJECT MICROSOFT’S OFFER

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According to a report published by The Wall Street Journal Online today, the Board of Directors of Yahoo!!!! plan to reject the bid of $31 a share offered by Microsoft a week ago Friday, saying it “massively undervalues” Yahoo.com

It had been reported this week by several source that Yahoo was looking for Microsoft to offer at least $35 a share.

According to this report, Yahoo will not consider any offers below $40 a share, twice what the company was trading for just 10 days ago.

At $40 a share the price of Yahoo would rise from the 44 Billion Microsoft offered originally to 56 Billion.

As we noted a few days ago, Microsoft shares have taken a major hit since the announcement adding to the cost of the acquisition.

As we have said before it appears to us, that Yahoo wants to stay independent and certainly not be acquired by Microsoft.

For Domainers, we believe it would be in our best interest for Yahoo to remain independent and NOT enter into a marketing partnership with Google.

Yahoo is only one of the two source ultimately for PPC revenue. That is why we are covering this story so closely and will continue to do so.
As Always we will keep you updated.

About Michael Berkens

Michael Berkens, Esq. is the founder and Editor-in-Chief of TheDomains.com. Michael is also the co-founder of Worldwide Media Inc. which sold around 70K domain to Godaddy.com in December 2015 and now owns around 8K domain names . Michael was also one of the 5 Judges selected for the the Verisign 30th Anniversary .Com contest.

Comments

  1. Ed - Michigan says

    Michael, I sure have a lot to learn in this business,

    But my take is YAHOO should offer ” YAHOO EXPRESS ” and offer one box to type in
    the domain request, just like GOOG and ASK.
    I don’t use YAHOO because
    I don’t have time to look at or want to look at all the ” fluff ” on their home page.
    Time is a most precious commodity.
    GOOG shines because it get’s to the point… NOW.

    JMHO,
    Ed – Michigan

  2. admin says

    Ed

    I agree with you. I haven’t used Yahoo in years. I use Google because like you say it give you the best simple results. Yahoo could do a lot to improve it service.

    But I really don’t care about that.

    I care about the fact that as domain owners we get all our revenue from basically from two sources, Google and Yahoo.

    We need to keep these two going. MSFT has too much traffic itself. They don’t need our traffic like Yahoo does.

    If Yahoo enters into a marketing deal with Google that will be even worse.

    If the meger gets approved at a higher price then we are all going to have to turn to our lobbying group ICA to protect us in that process.

    More to come

  3. Greg Nelson says

    I am highly in favor of the merger. As a major PPC advertiser, this deal creates one less platform to administer. Also, removes one of the 2 clunky platforms they own combined – assuming consolidation.

    Also, the demise of parking would create huge growth in the domain industry as a shift occurs between stagnant holder and active developers or stagnant holders become active developers. In the end, development should be the end goal for high value domains or else lease the traffic to someone who has developed and can use the traffic.

    Yes, I use parking. But, I think it is overall a major pollutant on the Internet. Another force for domainers to build is good for the industry.

  4. admin says

    Greg

    As a large domain owner from our standpoint it is not fesable to develop out more than a small percentage of the domains we own.

    The rest of the domain’s need to be parked generating revenue. The domain’s need to made available to deliver traffic to advertisers.

    From an advertiser’s standpoint the more choices the better.

    If you wind up with all PPC advertising controlled by Google and Microsoft the prices you pay today will go substantially higher in future years.

    Several years ago the oil industry consolidated many companies that used to distribute oil (gas stations), into just a few BP, Exxon and Shell Control the vast majority of oil distribution in the US.

    How’s that working out for you?

    On the other hand since the breakup of ATT the price of phone services dropped dramatically. Remember paying $.50 a minute for long distance calls.

  5. Tim says

    anyone that wants yahoo around as competition to goog should at least do a few searches at yahoo…I try to give each an equal share of my searches and many times compare the two…

  6. Greg Nelson says

    Agree with Tim. I try to use Yahoo as much as possible though the sheer reality is Google delivers better search. It would be interesting if Yahoo or MSN would improve if the user base actually grew. Momentum can do amazing things.

    @admin – Right now, with Google and Yahoo as the 2 PPC options, is there any traction to a company like Sendori or others?

    Here is my biggest deal with parking. 1 semi-custom parking page upon load…not a bad user experience, but loading 2 windows simultaneously or the extra 2 on exit…crappy user experience. Eventually people say, why direct nav…all I get is spam. Abuse of direct nav all for the immediate gain or additional revenue is an immediate detriment to an infant industry that is still awaiting a break-out.

    I would not be surprised if in the end a domain company creates a much better solution for mass portfolios than exists at current.