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YAHOO! - MICRO SOFT DEAL Nilesh & Krunal ! Presented bY ! Roll No.: 33 & 16 !

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Presentation on theme: "YAHOO! - MICRO SOFT DEAL Nilesh & Krunal ! Presented bY ! Roll No.: 33 & 16 !"— Presentation transcript:

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2 YAHOO! - MICRO SOFT DEAL

3 Nilesh & Krunal ! Presented bY ! Roll No.: 33 & 16 !

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5 "If you possess the market, you eventually possess the profits.“ – Bill Gates Founded in 1975 by Bill Gates at Redmond,Washington, U.S.. MSFT is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

6 About Yahoo! In January 1994, World Wide Web “Yahoo!” “ was founded by Jerry Yang and David Filo at Sunnyvale, California, U.S. Its the official expansion is "Yet Another Hierarchical Officious Oracle". Filo and Yang said they selected the name because they liked the word's general definition.

7 Steve Ballmer said, "Through this agreement with Yahoo!, we will create more innovation in search, better value for advertisers and real consumer choice in a market currently dominated by a single company," Microsoft CEO Steve Ballmer

8 Carol Bartz said… "This agreement comes with boatloads of value for Yahoo!, our users, and the industry, and I believe it establishes the foundation for a new era of Internet innovation and development." Yahoo! CEO Carol Bartz

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10 MicrosoftYahoo!Google Income60.420 Billion $7.22 Billion $21.796 Billion $ Employee89,80913,50019,786 Rank (Search Market) 3 rd 2 nd 1 st

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12  Yahoo & Microsoft merged to compete with Google.  They are merged for internet search & advertising Space.  They are work together for 10 years.  They break monopoly of Google.  Microsoft will make yahoo search engine very strong.eg. BING.  Microsoft will pay 88% TAC(Trafice Activation Cost for 5 Years)  Bing will be main Search engine of both website.  Some Yahoo! Employees will join in Microsoft. Something More......

13 41 53 65 78 Key Industry Traits Scale Economics Technology Driven Significant Capital Costs Driving Consolidation ADVERTISERS Attract publishers into network INVENTORY Attracts advertisers to the network

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18 20 Countries & Languages

19 500M Unique visitors per month 238M Active registered users source comScore March 2007

20 3,5B Average daily pageviews source comScore March 2007

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22 To connect people to their passions, their communities, and the world’s knowledge

23 Security and Privacy High Availability Performance Flexibility and Innovation

24 Microsoft and Yahoo Deal Microsoft and Yahoo announced a deal, in which Microsoft will power Yahoo search while Yahoo will become the exclusive search advertising provider for Microsoft's search engine, Bing.

25 Microsoft and Yahoo! pursued merger discussions in 2005, 2006, and 2007, that were all ultimately unsuccessful. On,February 1,2008, Microsoft made an unsolicited takeover bid to buy Yahoo! for US$44.6 billion in cash and stock. Yahoo! decided to reject Microsoft's offer as "substantially undervaluing" Yahoo!'s brand, audience, investments, and growth prospects. On May 03,2008, During a meeting between Ballmer and Yang, Microsoft had offered to raise its offer by $5 billion to $33 per share, while Yahoo! demanded $37.

26 On May 05,2008, following Microsoft's withdrawal Yahoo!'s stock plunged some 15% lower to $23.02 in Monday trading and trimmed about $6 billion off of its market capitalization. On June 12,2008, Yahoo announced that it had ended all talks with Microsoft about purchasing either part of the business (the search advertising business) or all of the company. On November 20,2008, almost 10 months after Microsoft's initial offer of $33 per share, Yahoo's stock (YHOO) dropped to a 52-week low, trading at only $8.94 per share.

27 On November 30,2008, Microsoft offered to buy Yahoo's Search business for $20 billion. On July 29,2009, it was announced with a 10 year deal that Microsoft will have full access to Yahoo search engine to be used in Microsoft future projects for its search engine Bing. Under the deal, Microsoft was not required to pay any cash up front to Yahoo. The day after the deal was announced, Yahoo's share price declined more than 10% to $15.14, about 60% lower than Microsoft's takeover bid a year earlier.

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51 Microsoft will guarantee Yahoo!’s O&O revenue per search (RPS) in each country for the first 18 months following initial implementation in that country Yahoo & Microsoft merged to compete with Google. They are merged for internet search & advertising Space. They are work together for 10 years. They break monopoly of Google. Microsoft will make yahoo search engine very strong.eg. BING.

52 Microsoft will pay 88% TAC(Trafice Activation Cost for 5 Years) Bing will be main Search engine of both website Some Yahoo! Employees will join in Microsoft.

53 Each company will maintain its own separate display advertising business and sales force; Self-serve advertising for both companies will be fulfilled by Microsoft’s AdCenter platform, and prices for all search ads will continue to be set by AdCenter’s automated auction process At full implementation (expected to occur within 24 months following regulatory approval),

54 The agreement protects consumer privacy by limiting the data shared between the companies to the minimum necessary to operate and improve the combined search platform, and restricts the use of search data shared between the companies. The agreement maintains the industry-leading privacy practices that each company follows today. Yahoo! also estimates that this agreement will provide a benefit to annual operating cash flow of approximately $275 million. Yahoo! estimates, based on current levels of revenue and current operating expenses, that this agreement will provide a benefit to annual GAAP operating income of approximately $500 million and capital expenditure savings of approximately $200 million.

55 OFFER $44.6 Billion $31 per share $31 cash, or $31 cash, or 0.9509 of Microsoft share 0.9509 of Microsoft share Shareholder election subject to 50/50 proration Shareholder election subject to 50/50 proration Targeted to close in 2 nd half of CY’08

56 OFFER 62% premium to Yahoo! Closing Price on 1/31/08 >100% premium on underlying operating assets $1 billion in synergies Microsoft EPS impact breakeven or better in second full fiscal year post closing* * Excluding purchase accounting and one time costs

57 bing will be main Search engine of both website.

58  People want a search experience that is easier, faster, and more relevant to their lives.  Give consumers a more compelling alternative in search.  Provide users with greater transparency and choice.  The deal will give advertisers a single platform to reach more users more efficiently and give them more search queries on which to bid.  These advertisers are likely to welcome the prospect of having a stronger competitive alternative.  Bing has colorful & latest backgrounds on its search engine.

59 Thank you

60 Any Queries Please??????


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