Despite the issues surrounding a possible hostile takeover by Microsoft, the slumping Yahoo is actually spending money, to the tune of $160 million. Yesterday, the search engine giant completed a transaction to acquire the online video service, Maven Networks, Inc.
Microsoft’s bid of more than $40 million, or $31 per share, was rejected by Yahoo, although now it seems that Yahoo may actually agree to the takeover, provided that Microsoft’s price is right. An asset manager of Legg Mason, Yahoo’s biggest shareholder, wrote a letter to investors saying that Microsoft would have to be closer to $40 a share to be fair. Currently there are no other offers on the table for Yahoo to examine. And Microsoft may be bidding its time until Yahoo ultimately accepts.
With the new company, Yahoo hopes to expand its online advertising network to compete with successful giant Google and keep itself afloat. Yahoo has been in a two-year slump that has seen financial problems and takeover bids.
Maven is a service that places targeted videos from television and movie studios online, and also helps manage the associated advertisements for those videos. Sony Pictures and CBS Sports are two of its current clients.
Video advertisement and viewing of video content online has seen a surge of popularity in 2007. Analysts predict that there will be even higher percentages of people viewing videos online in the coming months.
Two weeks ago Yahoo announced layoffs for approximately 1,100 of its workers. This is a seven percent reduction it the Yahoo workforce. Yahoo wouldn’t be specific about the layoffs but has said that the positions that were eliminated weren’t critical to Yahoo’s core operations. It is not clear if any of the employees who were laid off were offered other positions in the company.
Mary Ann Romans writes about everything related to saving money in the Frugal Blog, technology in the Computing Blog, and creating a home in the Home Blog. You can read more of her articles by clicking here.
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