Microsoft Could Borrow Money for Yahoo Buy

SEATTLE (Reuters) - Microsoft Corp said on Monday it may borrow money for the first time in its history to fund a portion of its $44.6 billion unsolicited offer for Yahoo Inc.

Microsoft also said it expects Yahoo's board to agree to the deal quickly, but Yahoo said over the weekend that it expects to take "quite a bit of time" to weigh all of its strategic options including remaining independent.

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mighty_douche4326d ago

Never thought id hear about M$ having to borrow money!

BrianC62344326d ago

Can someone please tell me what Microsoft sees in Yahoo that would get them to spend this much money? I just don't see what this will get Microsoft. How do they benefit? I use Google every day. I don't use Microsoft's search engine or Yahoo's. This deal won't get me to change either. I used all kinds of search engines before Google and they drove me crazy. Then Google came out and almost every time I use Google to search the Web I find what I want.

Does Yahoo have other stuff besides a search engine that Microsoft wants? They must because $44 billion is a lot to spend. They could destroy Microsoft if they make this deal and it does nothing to help.

mighty_douche4326d ago (Edited 4326d ago )

well if you break down search traffic...

20% MSN
20% Yahoo
50% Google (and growing)
10% other

Basically this take over is more about slowing down google than anything else. Personally i agree, i see it as pointless, if you want to search something you "google it", i cant see that changing.

With regards to yahoo having more than search to offer, i believe yahoo mail is the biggest free e-mail provider, having more active accounts than either hotmail or G-mail.

IntelligentAj4326d ago

They want to compete with google for ad revenue. They are realizing that it's a future spigot.

TrevorPhillips4326d ago

woow so microsoft are cheap hmm...

thisguywithhair4326d ago

By borrowing money they are only proving what I said in another thread (Go see what I said about MS and Disney). MS is losing money and they want to buy something that allows them to make money behind the scenes while appearing (in public) that they are making the money themselves.

v1c1ous4326d ago

i'm glad you're not a stock manager

wageslave4326d ago

Precisely. They can make *more* money by investing their own cash and borrowing the $44B.

Its called Business.

kewlkat0074326d ago

Well probably because they could borrow it, pay over time without incurring much interest on it. I'm sure whatever they have in the Bank is for Emergencies and Lawsuits. Unless they can make some of that money back in like 10 years with the acquisition..

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