Why does Microsoft offer to lend money to potential Yahoo business customers
As you know, the company Yahoo! considering the possibility of selling a business. We are talking about a group of sites, the income from which brings online advertising.
Microsoft has offered investment funds to borrow money to acquire Yahoo. According to Re / code, citing informed sources, the corporation leaders held meetings with companies interested in the deal and outlined the essence of their proposal.
Negotiations are still of a purely “research character,” emphasize the sources. Microsoft wants to make sure that in the case of selling Yahoo! with its new owners will be able to maintain partnerships.
')
In 2008, Microsoft wanted to buy out Yahoo! for $ 47.5 billion. However, Yahoo rejected this proposal, considering it not attractive enough (despite the fact that Microsoft offered for each Yahoo share a premium of - at that time - more than 60% of its market value).
In 2009, the companies entered into a 10-year cooperation agreement. Yahoo agreed to transfer its services to the search engine Microsoft Bing , and in exchange for this received the right to sell search advertising on Microsoft resources.
Thanks to the deal, in 2015, Bing's share in the US Internet search market reached the 20% mark for the first time, whereas in 2009 it was 8.4%.
In 2013, Yahoo’s new CEO Marissa Mayer expressed dissatisfaction with the collaboration with Microsoft - its share in the US search market grew at the price of a fall in Yahoo share. In 2015, the companies agreed to change the terms of cooperation. As a result, Yahoo gained more control over search results on desktop and mobile devices. Among other things, in the new conditions, it was stated that Yahoo should give only 51% of desktop search traffic for Bing ads, while the rest of it is free to manage independently, reminds the CNews publication.
Yahoo announced its intention to sell its core business in February 2016 for the second time. The first messages on this topic appeared in December 2015.
The market value of Yahoo's core business is currently below zero. The capitalization of Alibaba’s Yahoo subsidiary is $ 32.6 billion, while Yahoo’s market value is approximately $ 32.5 billion. However, according to other estimates, the main business is worth $ 6-8 billion.
According to Re / code sources, Yahoo still expects to receive $ 10 billion for it. This week, the company began negotiations with “strategic” investors, including AT & T, Verizon and Comcast. Next, the company plans to move to negotiate directly with investment funds.
During the negotiations on the sale of the business of Yahoo! one of its largest investors, Starboard Value, is extremely dissatisfied. In the opinion of its representatives, negotiations are going too slowly, and far from everyone is satisfied with the conditions of sale under discussion.
In this regard, Starboard nominated 9 candidates who should replace the entire board of directors of the web portal. Starboard Value, the current CEO of Marissa Mayer, has accused of failing to manage the company, philly writes .
“We are deeply disappointed at Yahoo’s dismal financial performance, incompetent management, lack of accountability and oversight of the board of directors,” the letter to Starboard shareholders said. "We believe that the board of directors, which lacks such qualities as leadership, objectivity and perspectivity, will decide in the interests of shareholders."
Yahoo replied that the company would consider the nominations of Starboard properly.
This month, Maier said that she is doing everything in the interests of Yahoo investors, developing a company's development strategy. She noted that she would like to continue to manage the company, even if the shareholders decide to change the rest of the board members.
Earlier this month, Yahoo appointed two independent directors without asking for Starboard opinion. A source familiar with the course of the case claims that in this way the board of directors is preparing to fight for its powers. Starboard holds a 1.7% stake in Yahoo.
In early March, Reuters reported that Yahoo formed a special commission that is exploring options for the sale of non-core assets: property, land, non-core business and patents. It is estimated that the realization of all this property can bring from $ 1 to $ 3 billion. Over the past three years, the company has already saved about $ 600 million through the sale and licensing of proprietary technologies.
Microsoft has offered investment funds to borrow money to acquire Yahoo. According to Re / code, citing informed sources, the corporation leaders held meetings with companies interested in the deal and outlined the essence of their proposal.
Negotiations are still of a purely “research character,” emphasize the sources. Microsoft wants to make sure that in the case of selling Yahoo! with its new owners will be able to maintain partnerships.
')
Yahoo! Relationships and Microsoft
In 2008, Microsoft wanted to buy out Yahoo! for $ 47.5 billion. However, Yahoo rejected this proposal, considering it not attractive enough (despite the fact that Microsoft offered for each Yahoo share a premium of - at that time - more than 60% of its market value).
In 2009, the companies entered into a 10-year cooperation agreement. Yahoo agreed to transfer its services to the search engine Microsoft Bing , and in exchange for this received the right to sell search advertising on Microsoft resources.
Thanks to the deal, in 2015, Bing's share in the US Internet search market reached the 20% mark for the first time, whereas in 2009 it was 8.4%.
In 2013, Yahoo’s new CEO Marissa Mayer expressed dissatisfaction with the collaboration with Microsoft - its share in the US search market grew at the price of a fall in Yahoo share. In 2015, the companies agreed to change the terms of cooperation. As a result, Yahoo gained more control over search results on desktop and mobile devices. Among other things, in the new conditions, it was stated that Yahoo should give only 51% of desktop search traffic for Bing ads, while the rest of it is free to manage independently, reminds the CNews publication.
Yahoo sale and conflict of interest
Yahoo announced its intention to sell its core business in February 2016 for the second time. The first messages on this topic appeared in December 2015.
The market value of Yahoo's core business is currently below zero. The capitalization of Alibaba’s Yahoo subsidiary is $ 32.6 billion, while Yahoo’s market value is approximately $ 32.5 billion. However, according to other estimates, the main business is worth $ 6-8 billion.
According to Re / code sources, Yahoo still expects to receive $ 10 billion for it. This week, the company began negotiations with “strategic” investors, including AT & T, Verizon and Comcast. Next, the company plans to move to negotiate directly with investment funds.
During the negotiations on the sale of the business of Yahoo! one of its largest investors, Starboard Value, is extremely dissatisfied. In the opinion of its representatives, negotiations are going too slowly, and far from everyone is satisfied with the conditions of sale under discussion.
In this regard, Starboard nominated 9 candidates who should replace the entire board of directors of the web portal. Starboard Value, the current CEO of Marissa Mayer, has accused of failing to manage the company, philly writes .
“We are deeply disappointed at Yahoo’s dismal financial performance, incompetent management, lack of accountability and oversight of the board of directors,” the letter to Starboard shareholders said. "We believe that the board of directors, which lacks such qualities as leadership, objectivity and perspectivity, will decide in the interests of shareholders."
Yahoo replied that the company would consider the nominations of Starboard properly.
This month, Maier said that she is doing everything in the interests of Yahoo investors, developing a company's development strategy. She noted that she would like to continue to manage the company, even if the shareholders decide to change the rest of the board members.
Earlier this month, Yahoo appointed two independent directors without asking for Starboard opinion. A source familiar with the course of the case claims that in this way the board of directors is preparing to fight for its powers. Starboard holds a 1.7% stake in Yahoo.
In early March, Reuters reported that Yahoo formed a special commission that is exploring options for the sale of non-core assets: property, land, non-core business and patents. It is estimated that the realization of all this property can bring from $ 1 to $ 3 billion. Over the past three years, the company has already saved about $ 600 million through the sale and licensing of proprietary technologies.
Source: https://habr.com/ru/post/299698/
All Articles