Microsoft vs. Yahoo! in the Battle for Your Desktop
19 Pages Posted: 17 Mar 2008 Last revised: 25 Oct 2012
Date Written: March 14, 2008
In a letter to the company's board dated January 31, 2008 Microsoft CEO Steve Ballmer made a $31 pre-emptive bid for Yahoo! This paper reports four studies of the unfolding dynamics of this move. The focus is on a strategic group composed of Microsoft, Yahoo, Google and Adobe. Study 1 examines whether the potential benefits of the operational synergies touted by Mr. Ballmer might be realized. Study 2 answers the question: Did Microsoft 'Massively Undervalue' Yahoo? Study 3 outlines Yahoo's audacious option. The paper concludes with a long-term view of a Yahoo-Adobe combination.
Keywords: Mergers, Valuation, Competition, Enterprise, Marketing, Optimal Expenses
JEL Classification: L63, L84, M21, M30, M41, O32, O33
Suggested Citation: Suggested Citation