Feeds

Ballmer! explains! hostile! Yahoo! bid!

'We've been engaged for months'

Boost IT visibility and business value

!!!!! Steve Ballmer all but confirmed that Microsoft wanted to buy Yahoo! for scale, branding and audience rather than any technology or products the web media co owns.

Ballmer claimed today that Microsoft's bid for Yahoo! would be a great deal for shareholders on both sides and will let the new company compete effectively in the online advertising market where, we were told, scale is king.

In a conference call with analysts and reporters this afternoon Microsoft's chief executive Steve Ballmer said he'd been "engaged with Yahoo! for eighteen months" and that the two companies "share a vision for online services".

Ballmer said it was a 'transformational' deal which focussed on three constituencies: consumers, advertisers and publishers. He said he could see no better way to address the consumer perspective than by buying Yahoo!.

Ballmer said: "Scale matters for online advertising. Aggregating inventory onto one platform improves yield for publishers."

Ballmer refused to be drawn on what this would mean for average margins saying it was a different business - he described Microsoft as already having four business models for different areas of its business.

Asked if there was a danger of a rival bid emerging, maybe from a big media company, Ballmer repeated his belief that it was a good deal. Then Microsoft's legal counsel Brad Smith piped up with an explanation of how it would be anti-competitive if Google bought Yahoo!.

Microsoft is hoping to close the deal in the second half of 2008, which suggests it doesn't expect too much of a fight from either Yahoo! or competition regulators.

Asked if the scale of the acquisition would mean a hold was put on enterprise software buys, Ballmer answered simply and gruffly: "No!"®

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.