Microsoft's big bid for Yahoo

In Yahoo, Microsoft saw a way to make gains in the online realm. But after all the entreaties and ultimatums, the software giant wasn't able to get its way, and Yahoo remains an independent company. Tune in here for the latest.

Latest coverage

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With Microsoft having dropped its offer for Yahoo, the two companies still face a formidable foe in Google--and many questions about what they'll do next.

Carl Icahn's gang of 10

Billionaire investor's crew for the Yahoo proxy fight features Mark Cuban and a pair of names linked to Microsoft's dissident slate.
• Biting the hand that feeds you: Cuban vs. Yahoo
• Icahn's solid record in proxy fights
• Adios, Amateur Hour. The Big Dog marks his turf
• Will Microsoft make a return bid?
May 15, 2008

Icahn launches Yahoo proxy fight, may boost stake by $2.5 billion

Billionaire shareholder activist Carl Icahn announces a 10-member proxy slate and is seeking antitrust clearance to acquire up to another $2.5 billion in Yahoo shares.
• Yahoo shareholder Jackson bows out of proxy fight
• Microsoft proxy slate free to go
• Will Yahoo investors be successful in launching proxy fight? Not likely
May 15, 2008

A reminder of why Microsoft wanted Yahoo

The megamerger plan may have gone away, but the threat from Google that the software giant was aiming to address has not.
• Video: Has Microsoft really closed the door on Microhoo?
• Gates on Yahoo: What part of 'no' don't you understand?
• Bill Gates reiterates Microsoft's Yahoo-less path
• Mundie: Microhoo totally dead, unless...
• Microsoft exec on Yahoo: 'We've moved on'
• Moving beyond Microhoo
May 13, 2008

The founder's dilemma: How to play the final sale

Critics say Jerry Yang and David Filo blew it by getting into 11th-hour negotiations directly with Steve Ballmer. But other company founders say the dynamics of the end game are more complicated than that.
• Negotiating with Microsoft is not for amateurs
May 9, 2008

News Corp.: We're out of the Microsoft-Yahoo-AOL fray

During its third-quarter earnings conference call, Murdoch's media conglomerate says nothing is cooking on the deal front with any of the three tech companies.
• If I had a nickel for every Yahoo rumor
May 8, 2008

Yahoo to rake in $1 billion from Google ads? Doubtful

It looks like Yahoo's deal to use Google search ads is much more limited than one scenario in which it would supposedly generate $1 billion in cash for Yahoo.
• Google addresses antitrust issue on Yahoo ad deal
• Yahoo-Google tie-up may not be so close
• Yahoo's AOL, Google deals still in the works
May 7, 2008

Microsoft: Saving face by buying Facebook?

In the wake of the Yahoo snafu, The Wall Street Journal's Kara Swisher hints that Microsoft's bankers may be courting Facebook, in which Microsoft already has a $240 million stake.
May 7, 2008

Yahoo shares break through low zone

Hopes of a return to the Microsoft negotiating table push the Internet search pioneer's shares up 6 percent from Monday's closing price.
• Yahoo shares take a drubbing
• Buffett's deal-making observations, post Microsoft-Yahoo
• SAP CEO: Microsoft should buy Yahoo
• Seven Yahoo analysts change to 'sell' or 'strong sell'
May 6, 2008

How to make Yahoo great once again

Memo to Jerry Yang: While technology will play a big role in your company's future, don't discount the strengths you already have as demand for online brand ads grows.
May 6, 2008

Yahoo sets shareholders meeting for July 3--fireworks anticipated

Yahoo sets a 10-day deadline for any shareholder who wants to name a dissident director to run against Yahoo's board to step forward by the end of business on May 15.
• Yang courts Microsoft: Show me the money
May 5, 2008

Yahoo's Yang: Time for work, not celebration

Yang believes the world that the Microsoft ordeal has left Yahoo stronger but not complacent. Shareholders will vote with their dollars Monday morning.
• Yang betting on Y!Open to save Yahoo
May 4, 2008

Microsoft and Yahoo: Not even on the same page

Despite a brief moment of optimism heading into Saturday, Microsoft and Yahoo were really never closer to doing a merger deal than two ships passing in the night.
May 4, 2008

May 3: The clean break

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Microsoft raises its offer to $33 per share, but Yahoo holds firm for $37. In the face of continued intransigence, Microsoft withdraws its offer, and after three months, it's back to square one.

Microsoft pulls its Yahoo offer

Redmond withdraws its offer for Yahoo after talks between the two companies break down on Saturday.
• Ballmer's letter to Yang
• Ballmer's e-mail to staff on Yahoo
• Yang's memo to Yahoo staff
May 3, 2008

Microsoft: Proxy battle not worth it

Steve Ballmer confirms Microsoft was willing to offer $33 a share, but that Yahoo was holding out for at least $37.
May 3, 2008

Yahoo: Microsoft's price just wasn't right

The software giant didn't value the Net pioneer highly enough, Yahoo says after Redmond withdraws its offer. Yang calls the episode a "distraction" that's "behind us now."
• Yahoo's two largest institutional investors unhappy
May 3, 2008

Is Google ad deal really Yahoo's best option?

Even if Microsoft doesn't come back to the table, Yahoo faces raised expectations for how well it can perform. Is a Google ad deal the best alternative?
• Yahoo-Google ad deal could be announced next week
May 3, 2008

What's Microsoft's plan B?

The software giant has said for some time that it has a strategy with or without Yahoo, but it's a strategy clearly in need of a jump-start.
• Microsoft's move: Is it just a feint?
May 3, 2008

Post-Microhoo: Winners and losers

Now that the music's stopped--for the time being--here's what you need to know about the new constellation of forces.
• Ballmer and Yang: The last words
• Report: A peek behind the Yahoo-Microsoft meltdown
May 3, 2008

Why Microsoft covets Yahoo

Steve Ballmer understands that Microsoft's dominance is eroding. Yahoo is the knight in somewhat tarnished armor that it hopes will keep Google at bay.
• Microhoo's six key players work their magic
May 3, 2008

April 29-May 2: Post-deadline uncertainty

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The two sides gird for what could be a final decision in a process that certainly feels interminable.

Yahoo-Microsoft acquisition talks back on

While a deal is far from imminent, the two sides are talking more directly than they have for some time, with Microsoft increasing its offer, according to a number of reports.
• Microhoo: By the numbers
• Yahoo shares jump as Microsoft decision awaits
May 2, 2008

The Silicon Valley triangle: Google, Yahoo, and Microsoft

It appears that Yahoo and Google are trying to check Microsoft, but it would only be strategic for Yahoo if Microsoft ends up paying a higher price.
May 2, 2008

Fight or flight? Tough choice for Ballmer and crew

As Microsoft's board weighs whether to launch a hostile fight for Yahoo or walk away, bear in mind that more than half of unsolicited bidders take the latter route.
• Report: Microsoft's latest leaning is to go hostile
• Report: Ballmer says Yahoo news coming 'in very short order'
• Ballmer's in a bind
May 1, 2008

Report: Microsoft board mulls higher Yahoo offer

The offer could rise to $32 to $33 per share, well over the present $29.12 value, but "major Yahoo shareholders" are angling for $35 to $37 per share, says The Wall Street Journal.
• Report: Microsoft board fails to decide on Yahoo
• Microsoft still moving in slo-mo on Yahoo
April 30, 2008

Schmidt in CNBC interview: We're concerned about Microhoo

In a taped appearance on the cable news outlet, Google's CEO makes it clear he isn't keen on Microsoft acquiring Yahoo.
• Report: Microsoft board met Wednesday
• Shares of Yahoo, Microsoft, and Google on the rise
April 30, 2008

If Ballmer bolts, who will lead Microsoft?

As Microhoo madness heats up, veteran Microsoft watcher Mary Jo Foley asks where the company's next leaders are coming from.
April 30, 2008

Yahoo director battle-tested on 'hostile' takeover fights

As Yahoo and Microsoft prepare to do battle, it turns out one of Yahoo's directors has already waged proxy wars in the past.
• Report: Microsoft earmarks $1.5 billion to keep Yahoo employees
• Yahoo president's salary up, overall pay down
April 29, 2008

Steve Ballmer's to-do list for the 'day after'

When he looks down his bench, Microsoft's CEO doesn't have a no-brainer choice to put in charge of Yahoo. This occasion may call for a Solomonic decision.
• Names of Microsoft's dissident Yahoo directors slate taking shape
• Yahoo, Microsoft shares sag, post-deadline
April 29, 2008

April 26: The deadline comes and goes

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As the clock ticks down to zero on the three-week deadline Microsoft set, Redmond does--nothing, at least on the surface. But CEO Steve Ballmer has already signaled Microsoft's readiness to drop the offer if need be. Plus: Earnings reports from the two companies.

Is the Microhoo wedding off or just postponed?

The Saturday deadline set by Steve Ballmer for the two tribes to try to resolve their differences before Microsoft shifts gears has passed with no news.
• Five reasons Oracle/PeopleSoft was more fun than Microhoo
April 26, 2008

Microsoft CFO: 'We'll see what next week brings'

Sounding the same note he took with analysts Thursday, Chris Liddell tells employees that the company is still trying to figure out its next move if Yahoo fails to come to the table by Saturday.
• Yahoo investor guide to Microsoft's A, B, and C options
• Memo to Steve Ballmer for the long flight home
• What Yahoo's board did wrong
• Yahoo shares continue to lag as deadline looms
April 25, 2008

Microsoft maintains tough line on Yahoo

In conference call with analysts, Microsoft's chief financial officer reiterated a Saturday deadline and says he has seen no good reason to up its bid.
• Microsoft earnings hit the mark
• Increased piracy hurt Microsoft's quarter
April 24, 2008

Yahoo rewiring itself from the inside out

Speaking at the Web 2.0 Expo today, Yahoo CTO Ari Balogh described how Yahoo is transforming itself into an open and social platform.
• Yahoo's openness efforts may not find higher Microsoft bid
April 24, 2008

Ballmer: Microsoft can move on without Yahoo

The CEO indicates that the software company is unlikely to raise its bid for Yahoo and is "prepared" to walk away from the deal.
• Names percolate in Microsoft's opposition slate
• Yahoo shares dip on earnings news, Microsoft threat
April 23, 2008

Yahoo sidesteps the big questions

The Internet giant has a solid quarter, but it loses an opportunity to seize the initiative in the Microhoo discussion.
• Yahoo earnings rise on Alibaba stake
• Yahoo report filled with Microsoft subtext
• Results won't sway Microsoft fight
• Microsoft throws cold water on Yahoo earnings
April 22, 2008

Big week in Microsoft-Yahoo battle

Software giant has set a Saturday deadline for Yahoo to get serious if it wants to avoid a proxy fight. Also, both companies report earnings this week.
• Yahoo to serve up Q1 financials; what's in it for Microsoft?
• Microsoft may face tough proxy fight without higher bid
April 21, 2008

April 5-17: The Google effect

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The pending Microsoft-Yahoo deal has always been about how better to compete against the Google juggernaut. But it turns out that the search giant is more than just a rival.

Yahoo, Microsoft, and the tailwind from Google

Google has turned in strong numbers for the first quarter. That could well have implications for the Microhoo saga as Yahoo gets ready to report its earnings.
• Google earnings make Microsoft yearn more for Yahoo
• Google's Schmidt: We like Yahoo
April 17, 2008

Analyst: Microsoft shares could handle 10 percent bump in Yahoo bid

Microsoft investors, says Brent Thill of Citigroup Global Markets, apparently are focused only on the Yahoo deal and are ignoring Redmond's strong underlying fundamentals.
• A hidden Yahoo acquisition cost for Microsoft
April 17, 2008

Google and Yahoo looking good?

Yahoo is inching closer to an ad search outsourcing deal with Google, after early returns of their two-week test show favorable results, according to a report in The Wall Street Journal.
April 16, 2008

Report: Microsoft wants to buy Yahoo on its own

A source tells Reuters that Microsoft would rather buy Yahoo without the assistance of News Corp. And the latter may be in talks with Yahoo directly.
• Analysts: Yahoo and Microsoft likely to synch up this week
• Is there a Y!Phone is Microhoo's future?
April 14, 2008

L'affaire Yahoo is tres banale to Madison Ave.

Advertising executives are watching the fight over the Internet pioneer. But they're still waiting to hear what's in it for them.
• Yahoo board to pull all-nighter? Nope
• Yahoo refining search-ad bidding process
• Analyst: Yahoo-AOL merger is a viable option
• Looks like some Yahooers prefer Microsoft to AOL
April 11, 2008

Yahoo board to debate deal scenarios

Board is expected to debate various options for cutting a deal with Microsoft, AOL-Time Warner, and Google, according to a report in The Wall Street Journal.
• A visual guide to the Yahoo mating dance
• AOL CEO addresses troops, but not Yahoo
April 10, 2008

Yahoogle? Microspace? It makes Google look good

More radical scenarios are sweeping across the Microsoft-Yahoo landscape. All the ruckus makes Google's position in Internet advertising look that much more solid.
• In buyout brawl, a flurry of punches
• Microhoo: Where's the outrage?
April 10, 2008

Yahoo to try using Google for search ads

In a dramatic departure that signals how seriously it's taking the Microsoft acquisition attempt, Yahoo will test the use of Google's ads for searches.
• Microsoft counsel warns against Yahoo-Google deal
April 9, 2008

Yahoo gets investor support in efforts to fend off Microsoft

Yahoo is said to have received confirmation of support from its second-largest investor, as it seeks to push Microsoft to up its buyout bid.
• Yahoo nixes June 10 shareholders meeting
April 8, 2008

Yahoo says Microsoft offer still 'undervalues' company

Microsoft issued an ultimatum Saturday to do a deal with the software giant within three weeks, or it will launch a proxy fight and take its case directly to Yahoo investors.
• Text of Yahoo's letter to Microsoft
• Can Yang dance with the heavyweight champ?
April 7, 2008

April 5: Microsoft sets a deadline

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Enough is enough, Microsoft declares. The software giant gives Yahoo three weeks to accept its terms or face a more hostile effort.

Microhoo: Ballmer takes off his gloves

Ballmer to Yang: Either join up with us or your shareholders, employees, and users will suffer from your inaction.
• Microsoft gives Yahoo three weeks to do a deal
• Ballmer's letter to Yahoo board: 'Now is the time'
• Salesforce.com's the better fit
April 5, 2008

Microsoft's search numbers show need for Yahoo

Latest monthly market share numbers from Comscore show Microsoft still struggling just to tread water against Google.
March 20, 2008

Yahoo takes the long road to Redmond

Without a competing suitor to push Microsoft's unsolicited bid higher, Yahoo is turning to its investors to get that job done.
March 19, 2008

March 18: Yahoo touts its strengths

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We don't come cheap. That's the basic message from Yahoo's barrage of financial projections about the company's potential over the next three years.

Yahoo: We'll double our cash flow

The Internet giant releases long-range financial forecasts to show that Microsoft's takeover bid "substantially undervalues" the company.
• Yahoo SEC filing aimed at investors, Microsoft
March 18, 2008

Source: Yahoo in informal talks with Microsoft

Yahoo's resolve appears to be softening, yet whether such discussions will lead to a deal remains to be seen, says source familiar with the talks.
March 13, 2008

Microsoft board to address next step in bid

Move could come in the next several days, according to a source. That's amid what appears to be a softening stance from the Internet search pioneer.
• Yahoo extends deadline for Microsoft to name opposition slate
March 5, 2008

Microsoft-Yahoo buyout bid: The road ahead

As Microsoft looks at the road ahead in its takeover bid for Yahoo, it might also want to glance at the rearview mirror to see what's been traveled.
• Combo could mean one fewer exit for upstarts
March 4, 2008

More Yahoo shareholders sue over bid

Also, Windows Live boss Kevin Johnson pens a memo about the bid to Microsoft employees, though its purpose seems just as much an attempt to reassure Yahoo workers.
February 22, 2008

February 2-20: Microsoft waits and wonders

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With Yahoo showing no signs of quick acquiescence to Microsoft's offer, Chairman Bill Gates and other Redmond execs weigh in on why a combined company would be a good thing.

Gates explains why Microsoft needs Yahoo

A main driver of the takeover offer is the desire for "great engineers," says Microsoft's chairman. Plus: Windows 7 and other future tech.
• Podcast: Behind Bill Gates' latest call to arms
February 20, 2008

Microsoft waiting for formal rejection

Wondering why Redmond hasn't upped its bid for Yahoo yet? The software giant may be waiting for a "Dear John" letter.
• Microsoft exec confident deal will work
• Yahoo outlines golden parachutes for employees
February 19, 2008

Report: Yahoo board divided over offer

New York Post says Yahoo's board is starting to split, with some independent directors sensing that CEO Jerry Yang is viewing the bid too emotionally.
• Top Yahoo shareholders could support Microsoft
February 15, 2008

Memo to Microsoft: Yahoo's A-list

The merger-minded software giant will likely want to keep Yahoo execs in a host of areas, including online ads, social media and Web search.
• Microsoft's acquisition track record
February 13, 2008

What's Microsoft's next move?

After a resounding "no" on its unsolicited buyout offer for Yahoo, Redmond will either up the ante or ready a one-two punch.
• Yahoo rejects Microsoft's bid
February 11, 2008

Bid raises more congressional eyebrows

Another House committee plans to hold a hearing on developments in the online ad world, regardless of whether the Microsoft-Yahoo deal goes through.
• Flickr fans band together to fend off Microsoft
February 5, 2008

Google calls Microsoft's 'hostile' bid troubling

A Microsoft-Yahoo merger could threaten the openness on which the Internet is based, a Google executive says.
February 3, 2008

February 1: The offer

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Like a bolt from the blue, Microsoft goes public with its bid to acquire Internet heavyweight Yahoo, as both companies look for better ways to compete against Google.

Microsoft bids $44.6 billion for Yahoo

The offer--described by Yahoo as "unsolicited"--amounts to $31 per share, or a 62 percent premium above its closing price Thursday.
• Q&A: Microsoft's Johnson on the bid
• Chart: A Microsoft-Yahoo combo by the numbers
February 1, 2008

FAQ: What's next for Microsoft's bid?

Microsoft faces financial and legal hurdles in its unsolicited bid for Yahoo. CNET News.com walks you through the potential steps.
• With Yahoo, Microsoft faces antitrust fight once again
• Open-source silver lining in Microsoft's proposal?
February 1, 2008

Perspective: Microsoft-Yahoo the mother of all clusterbombs

To pull this off, Microsoft's Steve Ballmer will need to throw one hell of a hail mary pass, says CNET News.com's Charles Cooper.
February 1, 2008

How deal could shape social networking

Don't expect to see Microsoft-Yahoo trying to create the next MySpace. They're going to try to stake a claim to the ad market instead.
• Microsoft: Threat or savior for Flickr?
February 1, 2008

Google's rise key to potential Microsoft-Yahoo merger

Three years ago, Yahoo was the search leader, online ads weren't so huge, and Microsoft's dominance on every PC was undisputed. All that's changed.
February 1, 2008

Cultural differences loom large

Both are aiming at Google but sit in different places--literally. Microsoft's work just begins with having to win over Yahoo's board and shareholders.
February 1, 2008

Images and video

Video: A rundown of 'L'affair Microhoo'
News.com's Dan Farber says recent statements suggest Microsoft is leaving the door open to Yahoo. (5/8/08)

Video: Moving beyond Microhoo
News.com's Dan Farber and Ina Fried look at how the deal fell apart and where the two companies go from here. (5/5/08)

Image: Takeover attempts
How common is it for companies to try taking over other companies? And how often does it get hostile? (5/1/08)

Image: Top 10 U.S. tech mergers
Here's a ranking of the leading U.S. technology merger and acquisition deals based on value. (5/1/08)

Video: A slo-mo game of chicken
CNET News.com's Kara Tsuboi and Ina Fried look at where Microsoft's bid for Yahoo stands and why it's got everyone on edge. (4/30/08)

Images: Rewiring Yahoo
Born as a Web portal, the company wants to create a new experience--social and open--for both consumers and developers. (4/24/08)

Image: Guide to the Microhoo saga
We've put together this handy guide to help you keep track of all the companies trying to buy or partner with Yahoo. Follow along if you can. (4/10/08)

Images: Yahoo's future finances
SEC filing shows Yahoo thinks it's worth more than Microsoft is offering. (3/18/08)

Video: Windows Server 2008
Steve Ballmer talks with News.com's Ina Fried about the software launch as well as relations with Brussels. (2/27/08)

Video: Gates on tools, Yahoo
In an interview with Fried, Bill Gates offers a glimpse at the rationale behind the Yahoo bid. (2/19/08)

Video: Deciphering Microsoft's bid
ZDNet Editor in Chief Dan Farber talks to Fried about Microsoft's surprise announcement. (2/1/08)

Video: Abuzz over Microsoft's bid
On the streets of Silicon Valley, everyone from software engineers to grandmas was analyzing the takeover offer. (2/1/08)

Video: Ballmer's big Yahoo vision
ZDNet's Farber analyzes Microsoft's strategy in search and the potential deal's impact on chief rival, Google. (2/1/08)

Images: Home page baby pictures
MSN.com and Yahoo.com might be rival destinations, but really, they've grown up together. Take a look back. (2/1/08)

Photos: Vista's first year
A look back on Vista since Microsoft first released the consumer version of the latest Windows operating system. (1/30/08)

Microsoft acquisitions

Although Microsoft isn't known for its massive acquisitions, the company has made some sizable purchases over the years. Here's a look at some of the company's largest deals.
Company	Year	Estimated cost
Fast	2008	$1.2 billion
Aquantive	2007	$6 billion
Tellme	2007	$800 million
Navision	2002	$1.33 billion
Great Plains	2001	$1.1 billion
Visio	1999	$1.3 billion
Hotmail	1998	$400 million
WebTV	1997	$425 million
Source: CNET News.com

Documents

Icahn: Yahoo board 'acted irrationally'
The billionare investor sends a letter to Chairman Roy Bostock urging Yahoo to revisit Microsoft's offer. (5/15/08)

Yang's memo to Yahoo staff
Yahoo's CEO tries to rally the troops after Microsoft drops its acquisition attempt: "We must redouble our efforts." (5/4/08)

Ballmer's letter to Yang
Here is the text of the letter Microsoft CEO Steve Ballmer sent to Yahoo chief Jerry Yang after talks broke down on Saturday. (5/3/08)

Ballmer's e-mail to staff on Yahoo
Here is the text of the letter Microsoft CEO Steve Ballmer sent to Microsoft employees after talks broke down on Saturday. (5/3/08)

Ballmer talks Microhoo with employees
Microsoft CEO addressed his troops and spent some of the speech talking about the Yahoo takeover bid. Here's what he said. (5/2/08)

Yahoo: Price must be right
Responding to Microsoft's Saturday ultimatum, Yahoo says it won't be bought "for anything less than (our) full value." (4/7/08)

Ballmer: 'Now is the time'
Microsoft's CEO expresses impatience over a lack of resolution and issues a three-week deadline. (4/5/08)

Yahoo buys time in Microsoft bid
CEO Jerry Yang explains why Yahoo is extending the deadline to nominate opposition candidates to its board. (3/5/08)

'This pivotal moment for Yahoo'
Yang tells to employees why he believes Microsoft's bid undervalues the company. (2/11/08)

Another virtual group hug from Yang
Yahoo CEO sends second e-mail in three days to comfort and encourage workers in face of Microsoft offer. (2/6/08)

Yang: 'Absolutely no decisions have been made'
Memo to anxious staffers urges all to keep cool and to stay focused on the task at hand. (2/4/08)

Ballmer's memo to his troops
In an e-mail to staff, Microsoft's chief gushes over Yahoo, while urging employees to try and keep their minds on business as usual. (2/1/08)

Ballmer's letter to Yahoo: We want you
Read the text of the letter that Microsoft sent to Yahoo's board late Thursday. (2/1/08)

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Credits

Editor: Anne Dujmovic, Jon Skillings
Design: Andrew Ballagh
Production: Emily Shurr