What is Digg?85 Comments
- inactive, on 10/12/2007, -0/+6Ok, I'm annoyed with all the inaccurate valuations of MSFT, so here are the numbers:
MSFT (This is the stock ticker for Microsoft)
Market Cap: 287.62B (This is what their stock is worth, which is part of their valuation)
Cash: 40.06B (This is what they have in the bank and in short term investments)
Net Assets: 70.1B
Debt: 0 (everyone understands this I guess)
YHOO
Market Cap: 58.55B
Cash: 3.18B
Net Assets: 4.3B
Debt: 749.99M
To purchase Yahoo, Microsoft would have to do a cash+stock offer, for example they pay 40B cash up front and 40B in stocks. Currently Yahoo is valued at about 60B, the offer of 80B is a little high, but not unrealistic, I would think Yahoo turned it down because they simply did not want to be sold. If MSFT try a hostile take over, it would cost well over 100B, and MSFT probably can not afford that.
Again, this is all based on a rumor, nothing is confirmed. - DrDigg, on 10/12/2007, -1/+5With $40 billion cash you think they could buy a patch.
- Krule, on 10/12/2007, -0/+1MSFT has a market cap. of 286.98B. Thats what the stock is worth, plus the 40 billion in cash.
- CrimsonHall, on 10/12/2007, -0/+1boy, you guys know a lot about tech, but could use a refresher in finance. Krule was right, almost - MS is worth approx $286B. Market Cap is all that really matters in worth - not revenue or assets since those are just made up accounting numbers. Although those numbers are used in addition to many other factors by the market to set the price for each share, ultimately, what Microsoft is "worth" is = the market cap which is share price * number of outstanding shares. As for how Microsoft could buy Yahoo, it could use debt (loans) or equity financing (sell shares), and could also use some cash as well.
- tedm, on 10/12/2007, -0/+1Chewie67:
The "worth" is measured by Market Cap - i.e. $287 Billion - the nmber of shares times their market price. The $70 Billion of assets doesn't come into it.
See http://www.investopedia.com/articles/basics/03/031703.asp - txmail, on 10/12/2007, -0/+1Someone should buy Microsoft... lets start a PayPal fund..
- wavesmash, on 10/12/2007, -0/+1Did you hear?
The Ikea guy bought Google.
bork bork bork! - chuck2006, on 10/12/2007, -0/+1"If MSFT try a hostile take over, it would cost well over 100B, and MSFT probably can not afford that.
Again, this is all based on a rumor, nothing is confirmed."
Just a clarification in case anyone here doesn't know what a hostile takeover is. It basically means that Microsoft would purchase Yahoo stocks until they owned a majority of them. Yahoo could not do anything about this since the company is publicly traded. Once a majority of stock is owned, Microsoft could start making decisions for Yahoo via the board of directors. - mikehilb, on 10/12/2007, -1/+2rumor = news, i don't think so.
no digg - meetzah, on 02/09/2008, -0/+1Yes! They rejected the offer:
http://www.bloomberg.com/apps/news?pid=20601103&si ...
http://www.reuters.com/article/businessNews/idUSN0 ...
http://online.wsj.com/article/SB120257515426256541 ... - danlin, on 10/12/2007, -0/+1it would be a brilliant move for MS especially if they can pull it off and I wouldnt be surprise if this rumor has real roots.
- Meshyf, on 10/12/2007, -0/+0I hate it when companys buy each other out. Competition is good for the marketplace.
- kamizu, on 10/12/2007, -0/+0for those who complain saying "rumours are not news", i agree, but you have to appreciate that he put "rumor" in the title. i wish more people would do that.
as for the subject: microsoft already has anti-trust problems. the last thing they could afford to do is spend a load of money only to get more legal problems. MS is more likely to copy features and improve their own products, rather than buy out the competition.
in the technology market, you could say the competition is the free but belated outsourced R&D. whatever they come up with, add it to your own and improve.
as for the MS flame: having seen their latest MSN mess beta, they are better off buying skype. - jo42, on 10/12/2007, -0/+0Great Goatse!
What would Messysoft do with MSN? - xedeon, on 10/12/2007, -0/+0You guys have to understand that YAHOO is a GLOBAL company do some of you even realize the vast size of yahoo?? they pretty much implemented almost all of the latest technologies out there heck you can even access most off yahoo's services on a WAP browser etc.. Google nor Microsoft is that diverse AFAIK anyway if you ask me I would rank these companies on this order
1.Google
2.Yahoo
3.Microsoft
- underburn, on 10/12/2007, -0/+0@ txmail
"Someone should buy Microsoft... lets start a PayPal fund.."
I'm Down... I got 5 on it. - diggnationdevon, on 10/12/2007, -0/+0Microsoft is worth exactly 287 billion, so they have plenty of cash to buy them.
- mulls, on 10/12/2007, -0/+0slowly, but SUREly, losing interest in Digg b/c of comments like most of the above...
yahOO suX! LAM3!! GOOGLE RULEZ SKOOLZ!! I woudnt pay $1 for that POS!!!
Well, good thing none of you are investment bankers. If only b/c if any of you had that kind of money I might have to kill myslef.
Digg...undugg. - p3lEr, on 10/12/2007, -0/+0Holly ***** 80 bil....does yahoo worth that much ?
- compu73rg33k, on 10/12/2007, -0/+0"This would be the kiss of death for Yahoo!"
Except they'd have an extra xx Billion dollars. - hashkaran, on 10/12/2007, -0/+0...and Microsoft might be selling Google PC as well..
stop messing around.. - Keir, on 10/12/2007, -0/+0I'm sure I read somewhere that it was just over $400b but either way, they aren't going to make an offer that would bankrupt them or cause them serious financial difficulty now would they :)
- misterpony, on 10/12/2007, -1/+1Yahoo has done a lot of good stuff recently (for them)--Flickr, Delicious, beta mail, etc... It'd be a shame to see them swallowed up by M$ .
- copperkidd, on 10/12/2007, -0/+0I don't even want to imagine how much this would suck if it went through.
- catullus, on 10/12/2007, -0/+0seeing as Yahoo bought the tiny Broadcast.com a few years ago for over 5 billion, 80 billion for the whole company does seem kinda low
- Chewie67, on 10/12/2007, -0/+080 Billion? That doesn't seem right.
Unless I'm reading this wrong, Microsoft is only worth 70 Billion. Look at the total assets:
http://www.microsoft.com/msft/earnings/FY06/earn_rel_q1_06.mspx - draper, on 10/12/2007, -0/+0This is absolutely absurd.
- MGaums, on 10/12/2007, -0/+0Microsoft is losing touch with the new wave of the online experience, and the $$ that comes along with it. I dont fault them for trying to buy into it... but I wouldn't really expect Yahoo! to go for it either.
- RadiatedAnt, on 10/12/2007, -0/+0Oh no!!! Microsoft just bought park avenue!!!!!! it seems were about to file for bankruptcy
- neepneeperoni, on 10/12/2007, -0/+0I hate greedy pigs and I hate Microflaccid.
If this ever did happen (operative keyword= "IF") then I would have to say a big "***** no!" to having Yahoo as my homepage. - inactive, on 10/12/2007, -0/+0yahoo is not even worth 80bil.
http://money.cnn.com/quote/financials/financials.html?symb=YHOO
pure rhetoric - ImaFraud, on 10/12/2007, -0/+0Microsoft is worth 286.45 Billion.
Yahoo is worth 58 Billion.
Google is worth 130.45 Billion. - inactive, on 10/12/2007, -0/+0There are things called "loans". Basically, a loan entails the "borrowing" of capital which a debtor then owes to a lendor.
So these arguments that Microsoft is $40billion short of buying Yahoo don't make sense. - mtupker, on 10/12/2007, -0/+0I doubt its would ever happen. Microsoft has dumped so much into R&D of their own search tech already.
- replica, on 10/12/2007, -0/+0@EmilioLizardo
Microsoft revenue increased by 13% the latest quarter. With Office 12 and Vista in 2006 revenue will increase not decrease.
They add to the cash horde every quarter. They are currently running $2.56 billion PROFIT every quarter. - panique, on 10/12/2007, -0/+0This would be the kiss of death for Yahoo!
- Evroccck, on 10/12/2007, -0/+0www.marketingshift.com has a better article they posted last night.
- nouhad, on 10/12/2007, -0/+0whats the point? and if this were true, why the hell didn't Yahoo accept?
- TheTraveller, on 10/12/2007, -0/+0You guys are silly...
If there is such a MSFT/YHOO deal then it will be OF COURSE not be paid in cash! Microsoft will just issue new shares, there will be more shares outstanding, and the value of the combined MSFT/YHOO will naturally be higher than MSFT alone.
Remember when AOL bought Time Warner? Yes, AOL bought Time Warner, not the other way round - pretty much exactly six years ago. It was an all-stock deal, valued at the time of the announcement at 160 billion - which is twice the rumoured MSFT/YHOO deal - and Microsoft is a much bigger company than even the combined AOL/Time Warner ever was.
So... bottom line: it would not be a problem at all for Microsoft to acquire Yahoo when it comes to finances... but it is unlikely that the courts approve such a merger without ordering the combined company to sell certain subdivisions that a combined company would have too much of a market dominance in. - eclectro, on 10/12/2007, -0/+0If it was true, I would have to move on, just on principle alone.
- Chewie67, on 10/12/2007, -0/+0kapgar :
"When will the mad whirlwind hosting roller coaster for my website ever end?
I started almost a decade ago hosting a site on Geocities which was gobbled up by Yahoo. Now I'm on a Yahoo Small Business hosting plan. And now I might wind up as a Microsoft site?!?!??"
The roller coaster ends when you stop using Cheap-O hosting. Pay for a decent service, and they'll stay in business for a long, long time. Use a cut-rate hosting company, and you roll the dice. - fdelucio, on 10/12/2007, -0/+0Wrong ashdigg, MS's worth is near 300billion, just twice as much as Google´s 125billion
- Darph.Bobo, on 10/12/2007, -0/+0You guys are hurtin' me. This isn't like buying dinner and drinks which after the fact is worth exactly zero. Let's say for argument sake Yahoo is worth $80 billion, then they've acquired an asset with a supposed net value of $80 billion they could easily borrow the entire amount if they desired and never open the petty cash drawer.
The company would now be worth without getting into details that bog down the explanation $80 billion more than before.. less borrowed amount, no capital reduction involved.
Class Dismissed!
Now go click on something! - a99tandem, on 10/12/2007, -0/+0Well MS has a maret cap of 287.08B... but their total assets are higher than that. For that we do some simple math. Volume*Share Price..
$ 57,975,661.00
* 26.97
= 1,563,603,577.17 $1.5 Trillion
But I'm no broker.. so that my best guess on how this all works. - ArunK, on 10/12/2007, -0/+0May shares of Yahoo! stocks went up the past couple of days.
- jeolmeun, on 10/12/2007, -0/+0Who would receive the $80 billion if MS gives $80 billion to Yahoo to buy Yahoo? Shareholders?
- RVDigital, on 10/12/2007, -0/+0No Digg
Till this "News" is more than "It's just speculation at this point." - modpancake, on 10/12/2007, -0/+0That would be the singularly worst corporation on the face of the planet... can't wait to see it happen. AOL should join too.
- SupaDawg, on 10/12/2007, -0/+0Wow, after reading the comments i have come to the summation that something like 65% of people using digg have no clue what they're talking about.
-
Show 51 - 81 of 81 discussions
Check out the new & improved 
© Digg Inc. 2009
— Content created and posted by Digg users is