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Yahoo Pulls Out of Bidding for Stake in AOL?
engine




msg:820465
 2:47 pm on Nov 10, 2005 (gmt 0)

Yahoo has pulled out of the bidding to buy a stake in America Online (AOL), according to reports in the Wall Street Journal and the Reuters News Agency.

[nwc.networkingpipeline.com...]

 

walkman




msg:820466
 4:21 pm on Nov 10, 2005 (gmt 0)

My guess: price went way up because of MSFT & Google battling

jcoronella




msg:820467
 6:12 pm on Nov 10, 2005 (gmt 0)

My guess: they were in the bidding just to make sure the price went way up

TinkyWinky




msg:820468
 6:24 pm on Nov 10, 2005 (gmt 0)

they were in the bidding just to make sure the price went way up

Good business I say.... if anything Yahoo and Microsoft must already have a whole heap of users compared to Google - would they not have advertisers and publishers.... sorry and a few gmail accounts...

I reckon it's a straight slug and I won't be betting against Microsoft... even if they overpaid by $2bill - I am sure they could recoup that very quickly through advertising and traffic - plus of course satisfaction at a. beating google and b. increasing their search share %

Not sure Google is going to want to almost clear out the bank for AOL ... although who know?

All conjecture of course... but good fun to second guess all the same.

walkman




msg:820469
 8:00 pm on Nov 10, 2005 (gmt 0)

>> they could recoup that very quickly through advertising and traffic - plus of course satisfaction at a. beating google and b. increasing their search share %

they would pay $2 Billion just for a "Google Loses" story ;).

Lord Majestic




msg:820470
 10:04 pm on Nov 10, 2005 (gmt 0)

If I was Microsoft I'd let Google win this one: there is no better way to ruin the competitor but to let it spend money on fundamentally different organisation.

weeks




msg:820471
 10:22 pm on Nov 10, 2005 (gmt 0)

I'd bet jCornella is right on the money. And, it was no doubt very educational.

(Anyone else read James Fallow's piece in the New York Times last Sunday on Yahoo? A better than average wrapup.)

adfree




msg:820472
 10:49 pm on Nov 10, 2005 (gmt 0)

To be honest: what could be the gain for Y!?!?!?

BillyS




msg:820473
 11:32 pm on Nov 10, 2005 (gmt 0)

My guess: they were in the bidding just to make sure the price went way up

No one does this in the "real world." If they didn't want the business, they would not have bid. What would they have done if they won? (If they really didn't want the business.)

jcoronella




msg:820474
 1:42 am on Nov 11, 2005 (gmt 0)


No one does this in the "real world."

Simply not true.

Regardless, certainly AOL has value to Y! at some cost, and they simply have to make sure that the competitor pays AT LEAST that much.

10% market share is nothing to sneeze at.

[achoooASK.comsoldfor$1.85bnoooo]

BillyS




msg:820475
 3:54 am on Nov 11, 2005 (gmt 0)

Simply not true.

Simply true. You're telling me the obvious, but that's not what the post said.

bidding just to make sure the price went way up

No one bids just to make sure the price went way up. That's NOT real world. They might bid based on value, but not to screw the other guy, that's just plain nonsense.

jcoronella




msg:820476
 4:41 am on Nov 11, 2005 (gmt 0)

Well, I guess I see it as bidding $9.99 on overture when your competitor is bidding $10.00 just to make him pay more. When you really can only make a business case for bidding 2.00, and you will pay that regardless of what you put on the table.

Sure, you could argue that you are bidding so you don't miss out on $2 traffic (or AOL for a song), but certainly you are only bidding $9.99 to make sure your competitor is paying as much as you can make him.

This is an every day strategy for lots of real world people here, but I admit the use of the word "only" is a bit extreme.

tomld2




msg:820477
 6:09 am on Nov 11, 2005 (gmt 0)

Whats the estimated price for AOL? 10B+?

TinkyWinky




msg:820478
 8:38 am on Nov 11, 2005 (gmt 0)

Whats the estimated price for AOL? 10B+?

That's what I was figuring.... so if MSFT stay in the game and push that price higher... then if Google has to spend $5b to get their slice (because AOL and TW are saying they do not want to be bought out but to Partner with someone) then that's a huge amount of money gone for good!

BG could dip in his pocket and pull that sort of cash out without even registering a blip on what else the copany wants to spend money on R&D wise - google simply can't!

perfectcoding




msg:820479
 9:53 am on Nov 11, 2005 (gmt 0)

If, as has happened recently, Google and MSFT let personalities get in the way, then this could go all the way. In that (rather excellent) situation, it doesn't really matter who most wants Y!, but who most wants the moral "victory" over their competitor.

perfectcoding




msg:820480
 11:39 pm on Nov 11, 2005 (gmt 0)

Why do I always seem to kill the conversation off when I join it?

dkershner




msg:820481
 12:50 am on Nov 12, 2005 (gmt 0)

>> Why do I always seem to kill the conversation off when I join it?

Well, you did confuse Yahoo! for where AOL should have been.

perfectcoding




msg:820482
 2:21 am on Nov 12, 2005 (gmt 0)

Hmmmm... could I try and pass that off as a deliberate mistake?

BillyS




msg:820483
 2:31 am on Nov 12, 2005 (gmt 0)

Well, I guess I see it as bidding $9.99 on overture when your competitor is bidding $10.00 just to make him pay more.

It's highly unlikely they are using the Overture bidding method to secure AOL's business. We're talking about a multi-billion dollar, multi-year deal here. Not a ten dollar bid to see who is at the top of the a list of advertisers in the next five minutes.

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