Thursday, October 1, 2009

Hostile takeover by microsoft for yahoo?

microsoft said they may consider hostile takeover of yahoo if yahoo dont want to sell it to them? my questions are:



1. what is a hostile takeover?



2. how do you accomplished it?



3. once hostile takeover is completed, does that mean microsoft can fire everyone in yahoo and bring in their own ppl?



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Microsoft could buy up all the shares of Yahoo that are currently up for sale.



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you bet ye.
Ok, to answer your questions:



1. A Hostile takeover is one where the management of the target company don't want to sell (i.e. Yahoo!) but are forced to for some reason, eg. the offer is so good that it would be very dificult to achieve that kind of value through normal trading.



2. As before, offer such a good price that can't be refused.



3. Often when a company is taken over, the management of that company is usually fired, unless there is an agreement otherwise, either becuase of efficiency reasons, or in the event of a hostile takeover, the original management may still want sabotage the company, so it's better to get rid of them. Ordinary workers in Yahoo! would be unlikely to get fired since they aren't involved in decision making.

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