Computerworld
The Microsoft-Yahoo deal: How does it compare?
See how the deal compares to memorable high-tech acquisitions by Microsoft's main competitors
Eric Lai  05 February, 2008 08:42

Even by the bloated standards of high-tech mergers and acquisitions, Microsoft's proposed purchase of Yahoo appears to be the largest ever among technology firms. It is certainly Microsoft's largest. The company mostly buys smaller firms for less than a billion dollars to fill in gaps in its product lineup. But that may be changing. Last year, for instance, Microsoft bought Seattle online advertising firm aQuantive for US$6 billion, its largest ever until the long-rumored Yahoo deal was unveiled on Friday.

Here's how the proposed Microsoft-Yahoo deal compares to some other memorable high-tech acquisitions by the company's main competitors:

Microsoft offers to buy Yahoo

Why: Microsoft wants to buy into the search/online advertising biz. Yahoo is struggling. Their common foe: Google.

Price: US$44.6 billion -- half cash, half stock -- a 62 per cent premium over Yahoo's price a day earlier.

Hostile/friendly: Unsolicited, though the two firms have had discussions during the past 18 months, according to Microsoft CEO Steve Ballmer.

Key premerger stats:

Market cap: Microsoft: US$303 billion; Yahoo: US$25.6 billion

Head count: Microsoft: 78,565; Yahoo: 14,300 (minus 1,000 in layoffs announced earlier this week)

Revenues: Microsoft: US$58 billion; Yahoo: US$7 billion

Net profit: Microsoft: US$16.9 billion; Yahoo: US$660 million

Deal to be completed by: Microsoft is targeting the end of this year, if Yahoo agrees and no regulators call foul.

Other major Microsoft acquisitions:

1999: Visio Corp. (business planning), for US$1.4 billion

2001: Great Plains Software (accounting and CRM), for US$1.45 billion

2002: Navision Software (ERP), for US$1.45 billion

2007: aQuantive (Internet advertising), for US$6 billion

2008: Fast Search & Transfer ASA (enterprise search), for US$1.3 billion

Computerworld Buyer's Guide - Vendors Matched to this Article

Comments

Post new comment

Login or register to link comments to your user profile, or you may also post a comment without being logged in.
The content of this field is kept private and will not be shown publicly.
Enter the fully qualified URL, eg. http://www.example.com/
  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd>
  • Lines and paragraphs break automatically.

More information about formatting options

Add to Google
Computerworld Buyer's Guide - Vendors Matched to this Article
Zones
Zone logoZones provide focussed content from Computerworld and leading technology partners.
Newsletter Subscription
Newsletter Subscription
Sign up for our Computerworld newsletters!
Syndicate content
 

Computerworld Webinar

Thursday, June 11th, 2009
10:30am EST (Sydney, Australia)
Screening at your PC

Computerworld is hosting a 30 minute live webinar to help you to learn how unified communications can save you money, foster innovation and business agility by making it easier for people to find, reach and collaborate with one another.

Register Now

Computerworld Community Comments
Whitepaper

LANPlanner | Ensuring High Performance WLAN Networks

Learn how the Motorola LANPlanner facilitates prompt and precise planning and the design and measurement of robust 802.11a/b/g/n networks. Download this paper now to discover how to take wireless network performance to the next level.

Enterprise IT Buyer's Guide
Find Technology Vendors Fast
 
Find vendors by name | Find by category
Sponsored Links
 
Send Us E-mail | Privacy Policy
Features List | Media Kit | Advertising | Contact Us

Copyright 2009 IDG Communications. ABN 14 001 592 650. All rights reserved.
Reproduction in whole or in part in any form or medium without express written permission of IDG Communications is prohibited.