Blimey. Just had a call from Mel, who’s just had a text from Steve Ballmer. Microsoft are going to  buy Yahoo at $31 a share!

This representings total equity value of approximately $44.6 billion.

But the more important thing for all of us is that there will be two players, not three.

So I heard the news at 12:08 GMT – I guess it’s been up for 8:00 minutes. Full release from Microsoft.


OK – Picking up the comments and listing them here… So refresh the page if you want a bit more.

The Telegraph also reveals that they loked at other ways of collaborating, quoting a letter: “In late 2006 and early 2007, we jointly explored a broad range of ways in which our two companies might work together” suggesting that they had already decided between them that they couldn’t take on Google alone.

  • Fox points out that this will be one of the largets Tech acquisitions ever – and way bigger than anything Microsoft have done before (AQuantive was $6Billion)
  • Search Engine Watch has a huge amount of cut and paste, including the whole letter from Steve Ballmer to the Yahoo Board (Nice scoop SEW)
  • BBC are all over it too.

What do Microsoft People think about it? well Mel has put his thoughts up now (rushing to a plane) which sounds positive, but I picked up on my Facebook about an hour before the news broke the Eytan Seidman, one if the biggest names from the algo side of Microsoft is moving on. No idea where to, but maybe he knew what was in the wind and thinks Yahoo’s organic algo will take the high ground.

Other blogger thoughts…

  • Dave Naylor points out that an offer does not mean it will happen. he wonders if Google will step in. I doubt Google would get it past the authorities though.
  • Andy Beal reckons that the takeover’s going to get hostile very quickly.
  • Sphinn has just nuked most of the other bloggers in favour this one (So – I’ve just deleted my Sphinn button.)

Dixon Jones

An award-winning Search and Internet Marketer. Search Personality of the year Lifetime achievement award Outstanding technology individual of the year International public speaker for 20 years in the field of SEO and Internet Marketing, including: Pubcon; Search Engine Strategies (SMX); Brighton SEO; Ungagged; Search Leeds; State of Search; RIMC and many more.


davidbain · 1st February 2008 at 1:08 pm

I did not see that one coming!

Thanks for having your finger on the pulse, Dixon.


Christoph C. Cemper the MarketingFan · 1st February 2008 at 8:31 pm

damn, that was quick dixon… I read some rumours about Y! buyout this morning already…

I like the idea of google stepping in 🙂 world domination … and picking up the remaining 1% search traffic share in Europe – lol


Microsoft & Yahoo! Deal - 15 Second Thoughts · 1st February 2008 at 1:23 pm

[…] – Dixon Jones was straight on […]

Leave a Reply

Avatar placeholder

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.