A Microsoft-Yahoo Acquisition Analytical Essay by Nicky

An analysis of the potential impacts of Microsoft's proposed acquisition of Yahoo.
# 146365 | 1,424 words | 4 sources | APA | 2010 | US
Published on Dec 25, 2010 in Business (Companies) , Business (Finance, Investment and Banking)

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The paper examines the advantages of Microsoft's purchase of Yahoo for Yahoo shareholders and for Microsoft. The paper explains why the combined Microsoft-Yahoo entity can become more profitable than if each company remained independent but also considers why the deal could fall short of expectations. The paper discusses the possibility of such a deal and shows why, in terms of financials, the deal makes sense. The paper concludes that the purchase might make sense, but there are still pitfalls, with respect to culture, technology or simply paying too high a price.

From the Paper:

"In 2007, the investment world was abuzz with news of a pending merger between Yahoo and Microsoft. In fact, merger may not have ever been an appropriate word. Microsoft's market cap is $146 billion; Yahoo's is just $18 billion. This was always going to be a purchase of Yahoo by Microsoft. That distinction makes a significant difference when analyzing the potential impacts of this proposed transaction.
"The transaction has been on-again-off-again for a couple of years now. At present, a group of Yahoo shareholders are working to clear legal obstacles to the acquisition. On March 6, 2009, a judge approved a settlement that will roll back a Yahoo employee settlement plan. That plan was considered a poison pill, so its removal makes the acquisition by Microsoft more likely (PC World, 2009). At this point, Yahoo's new CEO is not commenting on the issue and Microsoft CEO Steve Ballmer believes that a partnership between the firms makes sense.'

Sample of Sources Used:

  • Albanesius, Chloe. (2007). Would a Yahoo-Microsoft Merger Work? PC Magazine. Retrieved March 10, 2009 from http://www.pcmag.com/article2/0,1895,2126193,00.asp
  • MSN Moneycentral Microsoft page. Retrieved March 10, 2009 from http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=MSFT
  • MSN Moneycentral Yahoo page. Retrieved March 10, 2009 from http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=YHOO
  • No author. (2009). Judge OKs Settlement in Yahoo Shareholder Suit. PC World. Retrieved March 10, 2009 from http://tech.yahoo.com/news/pcworld/20090309/tc_pcworld/judgeokssettlementinyahooshareholdersuit_1

Cite this Analytical Essay:

APA Format

A Microsoft-Yahoo Acquisition (2010, December 25) Retrieved May 08, 2021, from https://www.academon.com/analytical-essay/a-microsoft-yahoo-acquisition-146365/

MLA Format

"A Microsoft-Yahoo Acquisition" 25 December 2010. Web. 08 May. 2021. <https://www.academon.com/analytical-essay/a-microsoft-yahoo-acquisition-146365/>