SearchEngineUpdate with Vanessa Zamora - 02-11-2008 Part I
Abstract: 1. Yahoo Has Officially Rejected Microsoft’s Bid, 2. Mobile Phone Progress Announced at Mobile World Congress
Vanessa Zamora
Video Content Producer, SearchEngineWorld
6:49 pm on Feb. 11, 2008 (utc 0)
Transcript
Monday February 11, 2008
Yahoo Has Officially Rejected Microsoft’s Bid
For over a week, Microsoft has been awaiting a response from Yahoo regarding its $44.6 billion takeover proposal offered by Microsoft on January 31st. Today, Yahoo released a statement rejecting the offer claiming its too low and “undervalues Yahoo.” Microsoft can now either walk away or up the ante and increase the bid price. Analysts have projected Microsoft will eventually raise the bid to as much as $40 a share to persuade Yahoo to accept. Should Microsoft decide to take an even more aggressive approach without offering more money, Microsoft could take its original bid directly to Yahoo’s shareholders or attempt to oust Yahoo’s 10 board members who rejected the original offer. Microsoft, which has seen its stock price fall more than 14 percent ($40 billion) since the bid was made public, could also just walk away. Investors action supports the notion that Microsoft wants Yahoo badly enough to raise the stakes, which sent shares up 65 cents to $29.85 in Monday’s early morning trading. Yahoo, which plans to continue evaluating all its options, may find itself in a precarious situation by running the risk that the company’s stock will plunge below $20 per share again if Microsoft decides to walk away. Yahoo’s management team has been under significant pressure to deliver a long-awaited turnaround that has been in the works for the past 18 months. Yahoo's stock price had dropped by more than 40 percent in the three months leading to Microsoft's bid.
Mobile Phone Progress Announced at Mobile World Congress
Major announcements have been made today at the Mobile World Congress, expected to further the mobile industry. Among many announcements, was Korea Samsung Electronics plan to develop a phone based on Google’s Android mobile phone software by early next year. This year, Samsung also expects to release up to five WiMax phones, which contain wireless technology similar to WiFi but with a longer range and stronger signals. Texas Instruments also said it would demonstrate a prototype cell phone based on Android. Texas Instruments and Samsung are a part of a group of about 30 companies who have said they will support Google’s operating system. The Mobile World Congress conference kicked off yesterday and will run through Thursday February 14th.
6:49 pm on Feb. 11, 2008 (utc 0)