The official death of Netscape Browser

AOL will officially pull the plug on the Netscape Web browser next week, which raises the question: Netscape is still alive? The rise and fall of Netscape is a reminder of just how quickly technology changes – and a warning to approach battles against Microsoft cautiously. Netscape was founded in 1994, and quickly won customers by providing software that made it easy for people to navigate the Internet. Netscape went public a year later and saw its stock price nearly triple on its first day of trading. At one point, the company had an $8 billion market cap and 90% of the Web browser market. But soon it all went south. Microsoft introduced its Internet Explorer browser and began eating into Netscape’s market share. Microsoft later paid AOL, which bought Netscape in 2000, $750 million to settle antitrust charges.By the late 1990s, the handwriting was on the wall, and for the last several years the company has been little more than a footnote. Today, Netscape has less than 1% of the browser market. At the end of December, AOL announced it would stop supporting Netscape on February 1, but ended up giving the browser a one-month stay of execution. This week, the diehards who still use Netscape’s browser received a notice telling them it was time to start using either the Firefox or Flock browsers — for some reason Netscape didn’t suggest switching to Explorer – officially marking the end of an era. I remember using Netscape back in the old days when noone cared about IE, but the times of glory are definitely over.

Source: WSJ

Here Come the Shareholder Lawsuits Against Yahoo

The inevitable shareholder lawsuits have started to be filed against Yahoo for not accepting Microsoft’s bid. Yesterday, the Wayne County Employee’s Retirement System of Michigan, was the first to file suit. The retirement fund owns 13,600 shares. You can expect more shareholders to pile on board, especially if this thing drags out.In fact, that is not the only shareholder suit Yahoo is facing. On February 1, the day Microsoft made its recent offer, another shareholder lawsuit was filed against Yahoo in California for failing to accept Microsoft’s bid from the year before. They might want to amend that lawsuit to include Yahoo’s most recent rejection as well.

The more that Yahoo fights the merger, the more shareholder lawsuits will pop up. The reports in the media typically note how this is increasing the pressure on Yahoo. Nothing against Wayne County, but 13,600 shares is a tiny stake for an institutional investor. If bigger investors started suing, then the pressure would be noticeable. But big investors don’t sue, they vote their shares.

Yahoo And News Corp. Continue Marathon Discussions; Possible Bid To Counter Microsoft

At the start of the Microsoft/Yahoo saga we reported that News Corp. was scrambling to put together a bid to compete with Microsoft, but backed down because they were unable to find outside funding to make the deal lucrative enough (the sorry state of the debt markets contributed to the problem).

Yesterday Silicon Alley Insider reported that talks between the two were continuing. We’ve confirmed the rumor – Yahoo and News Corp. are in the middle of marathon discussions, and have more details.

According to our source, the deal structure would spin off Fox Interactive Media (the primary asset is MySpace, but IGN, Scout Media, Photobucket, Fox Sports, AmericanIdol.com, Flektor, Ksolo; plus investments in Hulu, Simply Hired and Snocap are also assets of FIM) into Yahoo, along with a big cash injection from News Corp. and an unnamed private equity fund. The total investment would be valued at around $15 billion.

Yahoo would be valued at somewhere around $50 billion before the transaction, north of Microsoft’s $44.6 billion bid. That would leave News Corp., plus the private equity group, with more than 20% of the combined entity. They’d be the largest single stockholder and effectively in control of the combined Yahoo/FIM entity and their nearly 150 billion monthly page views (which would be second only to Google).

The negotiating team is said to be trying to iron out the details in the next 48 hours, in time for Yahoo’s upcoming board meeting to review its options.

Microsoft is largely expected to increase their bid to the $35 range in the next couple of days based on Yahoo’s formal rejection of their first offer (effectively raising their bid to $50 billion). Any competing offer needs to be in that range or higher.

One major snag – it is widely believed that, even with a News Corp. deal, Yahoo would need to outsource search marketing to Google to make the numbers work. While Google is likely happy to do that deal, it’s unlikely U.S. regulatory agencies would approve it (we discuss this in detail here). Without the revenue boost and cost savings from outsourcing, the News Corp. bid may not pencil out.

Yahoo, of course, isn’t too worried about that right now. All they want is any kind of bona fide competing bid to at least get Microsoft to increase their offer. Yahoo execs are saying privately that they think a Microsoft acquisition is now fait accompli. Still, if News Corp. can somehow make a compelling offer (and getting a private equity group on board was a huge first step), Yahoo’s board may recommend the deal to stockholders.

It’s Official: Yahoo Rejects Microsoft Bid

Over to you, Microsoft.

Yahoo, confirming reports over the weekend that it would reject Microsoft’s unsolicited takeover bid, said early Monday that its board had found the $44.6 billion offer was “not in the best interest of Yahoo! and our stockholders.” In a short news release, Yahoo said the $31-per-share proposal “substantially undervalues” the Internet company, its brand and its investments. The formal rejection sets the stage for Microsoft to take its next step, and there are plenty of options. It could raise its offer, canvass Yahoo’s major shareholders for support or even wage a battle to replace Yahoo’s board.

Below, the full text of Yahoo’s bid rejection:

“Yahoo! Inc. (Nasdaq: YHOO), a leading global Internet company, today said the Yahoo! Board of Directors has carefully reviewed Microsoft’s unsolicited proposal with Yahoo!’s management team and financial and legal advisors and has unanimously concluded that the proposal is not in the best interests of Yahoo! and our stockholders.

After careful evaluation, the Board believes that Microsoft’s proposal substantially undervalues Yahoo! including our global brand, large worldwide audience, significant recent investments in advertising platforms and future growth prospects, free cash flow and earnings potential, as well as our substantial unconsolidated investments. The Board of Directors is continually evaluating all of its strategic options in the context of the rapidly evolving industry environment and we remain committed to pursuing initiatives that maximize value for all stockholders.

Goldman, Sachs & Co., Lehman Brothers and Moelis & Company are acting as financial advisors to Yahoo!. Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal advisor to Yahoo!, and Munger Tolles & Olson LLP is acting as counsel to the outside directors of Yahoo!.”

Go to Press Release via the Securities and Exchange Commission »

Yahoo to Reject Microsoft Bid

Yahoo’s board is planning to reject Microsoft’s $44.6 billion offer, arguing that it “massively undervalues” the company, according to a Wall Street Journal report. The board reportedly won’t consider an offer below $40 per share, which, as we understand it, was a number that was tossed out by Microsoft last year. The board also argues that the current offer doesn’t adequately reflect the risk that the deal could be overturned by regulators.

The board is reportedly planning on sending a letter on Monday, a little more than a week after Microsoft submitted an unsolicited bid of $31 per share, or $44.6 billion, for Yahoo.

Although the company has repeatedly asked for time to review its options, most analysts believe it will only be a matter of time — and money — before Yahoo succumbs to Microsoft’s offer.

Given the size of Microsoft’s bid, the likelihood of a higher offer from another bidder is minuscule and the list of potential suitors is very short. Still, Yahoo is rumored to be toying with the idea reorganizing the company and outsourcing its search-based advertising to Google in an effort to bolster revenue and remain a standalone company. Some industry watchers have also speculated that Yahoo could be trying to arrange an alternative deal with AOL.

Yahoo’s intentions could become clearer in another week (or by mid-February), when the company is expected to cut about 1,000 positions. Hypothetically, if it proceeds with the layoffs, that could indicate its seriousness at remaining independent, according to experts.

Microsoft to Acquire Yahoo! for $44.6 Billion

Microsoft will offer $44.6 billion to buy web pioneer Yahoo. Let’s just say we’d expect some pretty interesting changes to some popular web mail, web apps and instant messaging clients if it happens. Read more at: TechCrunch, DealBook, Google Blogoscoped.

Microsoft unveils Office 2008 for MAC

Microsoft used the Macworld conference on Monday to release its much-anticipated Microsoft Office 2008 for Mac software suite. The Redmond, Wash.-based software giant promises the new suite will offer a unique and feature-rich Mac-like solution to Mac users for their personal, home office and business office needs. Han-Yi Shaw, lead program manager for Word in Microsoft’s Mac business unit, said the developers had four key goals in mind when developing the suite: discoverability, simplicity, professional output and compatibility. He added it was also important to Microsoft to create a product that would be Mac-like in its touch and feel.

Three different versions of Office 2008 for Mac are now available. The core suite is Microsoft Office 2008 for Mac and includes Word, Excel, PowerPoint and Entourage, plus Microsoft Exchange Server support and Automator tools, at $539.95 for the full edition and $319.95 for upgrades. Microsoft Office 2008 for MacHome and Student edition includes up to three licenses for $199.95. And for the professional enthusiast, Microsoft Office 2008 for Mac Special Media edition is $629.95, or $379.95 for the upgrade. Much like last year’s release of Microsoft’s Office 2007 for Windows, the Mac edition boasts a new user interface developers promise will be more intuitive for end users,along with an abundance of new features and capabilities. The only thing which needs to be fixed is obviously the price – I don’t know many people willing to pay so much for software…

Source: PC World

Facebook and Microsoft Expand Strategic Alliance

Facebook News Release: Microsoft and Facebook Expand Their Alliance. Microsoft to take equity stake in Facebook; companies expand advertising deal to cover international markets.

This is really great news and it looks like Microsoft beat out Google in the negotiations to claim an ownership stake in Facebook!Facebook and Microsoft Corp. today announced that Microsoft will take a $240 million equity stake in Facebook’s next round of financing at a $15 billion valuation, and the companies will expand their existing advertising partnership. Under the expanded strategic alliance, Microsoft will be the exclusive third-party advertising platform partner for Facebook, and will begin to sell advertising for Facebook internationally in addition to the United States. Financial terms were not disclosed.