Microsoft to Buy Yahoo. Google to Scratch Chin.

According to Market Watch, Microsoft Corp. offered to buy search-engine operator Yahoo Inc. for $31 a share, or $44.6 billion, in an effort to better compete with online-advertising juggernaut Google Inc.
Microsoft executives acknowledged that Google is the 800-pound gorilla of the search market and said a partnership with Yahoo would create a stronger rival.
“We’re very, very confident that this is the right path for Microsoft and Yahoo,” Microsoft Chief Executive Steve Ballmer said in a conference call Friday morning.
In an appeal to Yahoo employees, who are nervous about pending layoffs, Microsoft said it would offer significant retention packages to Yahoo engineers, key leaders and employees across all disciplines.
[UPDATE] This story is dominating the news today. I could point to a million opinions, but I’ll narrow it down for the info snackers.
Silicon Alley Insider believes a counter offer from a major private-equity firm may be in the works.
Kara Swisher says Yahoo! insiders were stunned by the public announcement this morning and consider it a hostile bid.

About David Burn

Co-founder and editor of AdPulp. I wrote my first ad for a political candidate when I was 17 years old. She won her race and I felt the seductive power of advertising for the first time. I worked for seven agencies in five states before launching my own practice in 2009. Today, I am head of brand strategy and creative at Bonehook in Portland, Oregon.


  1. And where would all the yahoos work? Redmond?

  2. Hey Todd,
    Thanks for dropping by. I like your post on the state of Yahoo! and what led to today’s news. Especially, this passage:

    The passion went out of the place like a sigh. We were getting new managers every six months. In my one meeting with Terry Semel he looked straight at me and said, “We don’t actually know what we’re doing. Nobody in the Internet business truly does,” as Jerry Yang slept in a chair holding his putter and Dan Dan Rosensweig twitched in a corner. I’m not making this up.