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MS/yahoo takeover

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robmazco

IS-IT--Management
Jan 24, 2008
600
US
Not sure if this goes here..
I surely do not understand the business world and what happens when, in this case, MS bids to buy Yahoo. Cant Yahoo just say no, its not for sale? I just dont seem to understand how it means that they more or less must sell. If someone came to me and said ill buy your car for $5000, I have to say yes or take offers from others? I just dont understand this business aspect of it.
I remember watching Bonfire of the Vanities, but it doenst explain how corporate takeovers work, but it was a great movie.
Can someone shed light on how this works in the business world?
 
Because Yahoo is a publicly owned company anyone can purchase shares. The more shares you own the larger portion of the company you own.

Example.

Company A has made 100 total shares available to the public.

Investor A purchases 15 shares and now owns 15% of the company

Investor B purchases 40 shares and owns 40% of the company

Investor C purchases 45 shares and owns 45% of the company

This makes investor C the majority stockholder (in essence the "owner"). If Investor B decides they don't like the way that Investor C is doing business then investor B can purchase Investor A's 15 shares and take over the majority.

Obviously this is a VERY VERY VERY simple means of trying to explain a somewhat complex process.

Hope that helps

--Dan
Whenever you find yourself on the side of the majority, it is time to pause and reflect.
Mark Twain
 
ding - and the lightbulb goes off..

simple enuff :p

thanx
 
bad move on microsoft part. instead come up with innovative ideas, they are trying desperately to regain web supremacy. i ll give it an F. I say even with 3 microsoft and 2 yahoo combined they wouldn't even be able to out-do google.

so definitely an F.
 
And today I read online that a group oh Yahoo share holders are now suing Yahoo for not taking the deal.

Denny
MCSA (2003) / MCDBA (SQL 2000)
MCTS (SQL 2005 / Microsoft Windows SharePoint Services 3.0: Configuration / Microsoft Office SharePoint Server 2007: Configuration)
MCITP Database Administrator (SQL 2005) / Database Developer (SQL 2005)

My Blog
 
geez..love this litiginous society. classic damned if you, damned if you dont....
 
Yeah, pretty much.

Denny
MCSA (2003) / MCDBA (SQL 2000)
MCTS (SQL 2005 / Microsoft Windows SharePoint Services 3.0: Configuration / Microsoft Office SharePoint Server 2007: Configuration)
MCITP Database Administrator (SQL 2005) / Database Developer (SQL 2005)

My Blog
 
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