Microsoft executives said Friday that they could have to compete with other potential acquirers to win Yahoo!, despite its generous $44.6 billion takeover bid.
Microsoft (nasdaq: MSFT - news - people ) said on a Friday morning conference call that "any number of companies might have an interest" in also acquiring Yahoo! (nasdaq: YHOO - news - people ). EBay (nasdaq: EBAY - news - people ), News Corp. (nyse: NWS - news - people ), AT&T (nyse: T - news - people ), and Comcast (nasdaq: CMCSA - news - people ) have each previously been speculated as possible Yahoo! buyers. (See: "Betting On Yahoo!")
Microsoft isn't concerned about a potential bidding war with Google (nasdaq: GOOG - news - people ). On the conference call, Microsoft said antitrust laws prevent Google from buying Yahoo!
According to Nielsen, Google controlled 56% of the search-engine market share in the United States as of December. Yahoo! controlled 18% and Microsoft controlled 14%. (See: "Google Beware")
Microsoft's generous offer seems likely deter other bidders. Microsoft is offering $31 in cash and stock for each share of Yahoo! The offer is a 62% premium to Yahoo! share's Thursday closing price and values the portal at more than 60 times its earnings last year. (See: "Microsoft Makes Its Yahoo! Play")
Microsoft is offering the hefty premium to a company that is struggling. Earlier this week Yahoo announced dismal fourth-quarter results and steep job cuts. (See: "Economic Bust Poses Bigger Threat To Yahoo!")
