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    M&A: Microsoft-Yahoo Merger

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    Microsoft-Yahoo Merger
    Microsoft and Yahoo have been under off and on again talks concerning a merger between the these two internet giants. If they ever reach an agreement, this would be one of the largest mergers in history and the largest merger ever between two technology companies. By the time you are reading this, the deal might have already gone through. Or perhaps the two sides have decided never to deal with each other again. This is the nature of the negotiations they have been through.

    As you know from reading the material in the background materials, mergers can bring about great rewards but also can bring great risks and pitfalls. For this assignment, do some research concerning the arguments both for and against such a merger from a financial perspective. For this module we are not so concerned with how consumers may fair, as this is an issue for the government to consider if they have to approve this merger. Instead you are considering this 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 both corporations.

    There is a huge amount of articles on this potential merger, but here is one link to get you started:

    Albanesius, Chloe (2007), Would a Microsoft-Yahoo merger work? PC World, Retrieved August 2008 from: http://www.pcmag.com/article2/0,1895,2126193,00.asp

    But do not limit yourself to this article. Use Proquest, EbscoWeb, and other sources in the Cyberlibrary. Use various internet search engines such as news.google.com for the latest news on this merger. Look at the webpages for Yahoo and Microsoft. Then write a paper answering the following question:

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

    In your answer, consider the following issues:

    1. The impact on Yahoo shareholders

    2. The impact on Microsoft shareholders

    3. The financial condition of both corporations

    4. Why might Microsoft and Yahoo combined as one company be more profitable than they would if they remain independent?

    5. Potential pitfalls - might the combined entity actually be less profitable than either company operating independently.

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    Solution Preview

    Mergers and acquisitions CASE #5

    Microsoft-Yahoo Merger
    Microsoft and Yahoo have been under off and on again talks concerning a merger between these two internet giants. If they ever reach an agreement, this would be one of the largest mergers in history and the largest merger ever between two technology companies. By the time you are reading this, the deal might have already gone through. Or perhaps the two sides have decided never to deal with each other again. This is the nature of the negotiations they have been through.

    As you know from reading the material in the background materials, mergers can bring about great rewards but also can bring great risks and pitfalls. For this assignment, do some research concerning the arguments both for and against such a merger from a financial perspective. For this module we are not so concerned with how consumers may fair, as this is an issue for the government to consider if they have to approve this merger. Instead you are considering this 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 both corporations.

    There is a huge amount of articles on this potential merger, but here is one link to ...

    Solution Summary

    Response discusses M&A: Microsoft-Yahoo Merger

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