Purchase Solution

Do you think a merger between Microsoft and Yahoo would add value to the shareholders of both corporations?

Not what you're looking for?

Ask Custom Question

Do you think a merger between Microsoft and Yahoo would add value to the shareholders of both corporations?

Purchase this Solution
Solution Summary

The solution discusses one's opinion on the merger between Microsoft and Yahoo, its impact on their shareholders, the financial condition of both corporations, the reasons why a combination of both companies will be more profitable than remaining independent, and the potential pitfalls if the combination becomes less profitable. This solution is 549 words with references.

Solution Preview

The Microsoft-Yahoo potential merger has become one of the most talked about events in the Internet. If the merger was completed, Yahoo shareholders would be happy with the high amount of $31 per share which is 62% of premium to that Thursday's closing price. It would have turned out to be a relief to the Yahoo shareholders who have witnessed the sliding down of the Yahoo stocks nearly 32% this year.

For the Microsoft shareholders, having Yahoo would greatly help Microsoft in its attempt to beat Google and Microsoft has always been trying to improve its position through a series of acquisitions. However, since the announcement of the bid, its stocks has lowered in value hence, the Yahoo price of $31 would have meant more dilution for the Microsoft shareholders had the merger/acquisition taken place.

Lately, the financial condition of Yahoo has not been well. Even if Yahoo has remained to become second to Google ...

Purchase this Solution
Free BrainMass Quizzes
Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

View More Free Quizzes
Related BrainMass Solutions

  • M&A: Microsoft-Yahoo Merger

    Then write a five page paper answering the following question: Do you think a merger between Microsoft and Yahoo would add value to the shareholders of both corporations?

  • Mergers and acquisitions

    Then write a five page paper answering the following question: Do you think a merger between Sprint and T-Mobile would add value to the shareholders of both corporations?

  • Merger between Oracle and SUN - Value to Shareholders

    Then write a five page paper answering the following question: Do you think a merger between Oracle and SUN would add value to the shareholders of both corporations? In your answer, consider the following issues: 1.

  • Net Present Volume, Mergers and Acquisitions

    Instead, consider the question from the point of view of whether or not such a merger would be a profitable undertaking that would add value to the shareholders of three corporations (Elpida Memory, Micron Technology, and Nanya Technology).

  • Oracle-Sun Merger Discussion

    Then write a five page paper answering the following question: Do you think a merger between Oracle and SUN would add value to the shareholders of both corporations? In your answer, consider the following issues: 1.

  • Net Present Value- Sprint Merger

    Then write a five pages report for the shareholders of Sprint and T-Mobile by answering the following questions and the questions in part I: Do you think a merger between Sprint and T-Mobile would add value to the shareholders of both corporations?

  • Would a Merger of Sprint and T-Mobile Add Value to Shareholders of Both Corporations?

    Do you think a merger between Sprint and T-Mobile would add value to the shareholders of both corporations? The main focus of this assignment will be answering the question above.

  • Mergers and acquisitions

    a merger between Sprint and T-Mobile would add value to the shareholders of both corporations?

  • Net Present Value & Mergers: Sprint and T-Mobile

    Answering the following questions and the questions in part I: Do you think a merger between Sprint and T-Mobile would add value to the shareholders of both corporations?

View More Related Solutions