Yahoo and Softbank Talk Business Regarding Microsoft Bid
(NewsVisual, powered by IntellectSpace )-- In the week since Microsoft Corp (NASDAQ: MSFT) made its unsolicited $44.6 billion bid for Yahoo Inc (NASDAQ: YHOO), a number of concerned parties have stepped in to try and stop the deal.
Google Inc (NASDAQ: GOOG) has been public about its worries that a partnership between Microsoft and Yahoo would make Microsoft an all too powerful competitor in online markets, though its doubtful that Google would make a successful counter offer due to regulatory concerns.
The latest to join in Yahoo’s aid is Japanese mobile carrier Softbank Corp. The company’s President, Masayoshi Son, said that he is currently in talks with Jerry Yang, Yahoo’s CEO, about a plan of action regarding Microsoft’s takeover bid. Son denied that Softbank was considering a counter offer for Yahoo, but offered little details as to his role in the talks.
In order to investigate Softbank’s motivations in consulting with Yahoo, NewsVisual created an IntellectSpace Knowledge Map that illustrates the close links between the companies that could point to some answers.
The most noteworthy connection is that of the ownership relationship between Softbank and Yahoo. Softbank actually owns considerable stakes in both Yahoo and Yahoo Japan, of which Yahoo is also a stakeholder.
Three of Softbank’s key senior leaders are also currently part of the executive team and board of directors at Yahoo Japan. Softbank President Masayoshi Son is the Chairman of Yahoo Japan, Masahiro Inoue, Director at Softbank, is Yahoo Japan’s President/CEO, and Mitsuo Sano holds Corporate Auditor positions at both Softbank and Yahoo Japan.
It is very likely that these types of executive and ownership connections played a strong role in Softbank’s latest involvement with Yahoo. Given those who have come to Yahoo’s rescue in the past week, it is becoming increasing possible that the company may actually be able to successfully avoid Microsoft’s advances.
Click here or copy this link into your Internet Explorer browser for an interactive version of this IntellectSpace Knowledge Map: http://nv.intellectspace.com/ispace/GuestMonitor.aspx?id=ba488159-c068-45c9-a3c4-10abae1dad49
See related blog post from The Wall Street Journal’s DealJournal
This only the begining for Google. Yahoo willn't answer no to the buy out bid by Microsoft. In turn Yahoo has been meeting with Google in regards to an alliance. Still Microsoft will back fire with a hostile take over of Yahoo, this will be where Yahoo will op to take thier poison pill that was set up by the Yahoo board few years back to prevent such a hostile take over by another company.
Still on the big picture Yahoo will loose lots of loyal customers to Google even if they are bought or join with Google.
Thank you
Posted by: martin | February 08, 2008 at 12:48 PM
It makes me curious about the role that Softbank is having in the negotiations. I'm hesitant about the whole Microhoo deal because of the fundamental differences in the two companies: Microsoft, traditionally a software-based closed source company Vs. Yahoo, who runs many web-based services based on open-source code.
Posted by: Dara | February 08, 2008 at 04:06 PM