YHOO + MSFT = Overture 2.0?
Microsoft Corp. is offering $44.6 billion in cash and stock for search engine operator Yahoo Inc. in a move to boost its competitive edge in the online services market.This is big news for those of us in the search engine advertising industry. Remember when Overture supplied PPC ads to both Yahoo and Microsoft? I'm still holding some YHOO shares I have via the Overture acquisition in 2003. Today might be a good day to exit that position. ;-)
The unexpected announcement Friday comes as Microsoft, the world's biggest software company, seeks new ways to compete more efrfectively against the search and online advertising powerhouse Google Inc.
In a letter to Yahoo's board of directors, Microsoft Chief Executive Steve Ballmer said the company will bid $31 per share, representing a 62 percent premium to Yahoo's closing stock price Thursday, and emphasized that the deal isn't subject to financing.
I wonder if MSFT is a subscriber to Analytical Investing (a client). The MSFT offer is $31 per share which is awfully close to the $30.74 intrinsic value from the Analytical Investing stock valuation model. Nice call:
Yahoo! Should NOT Be For Sale
Microsoft to Buy Yahoo! to Battle Google?
Tags: yhoo, msft, yahoo, microsoft, overture, value investing