Notes from the conference call this morning:
- Press release: "Transaction valued at approximately $44.6 billion in cash and stock; provides 62 percent premium to current trading price for Yahoo! shareholders; combined entity to create a more competitive company, providing superior value to shareholders, better choice and innovation for customers and partners"
- Updated: Forgot one thing Microsoft also picks up that is interesting: Yahoo! Pipes and Yahoo! Mash.
Benefit #1: Yahoo! helps Microsoft when it comes to search/advertising.
Solid business boost for Microsoft without doubt.
Benefit #2: Microsoft becomes a stronger social media player
Through Flickr and del.ico.us, Microsoft gains additional assets that help with its community-building and social networking efforts across consumer segments. Also, Microsoft's ability to leverage the install base of people using Yahoo! Mail and Yahoo! Messenger is also compelling.
Benefit #3: Infrastructure matters. Microsoft's cloud just got bigger.
Data centers are not cheap - economies of scale kick in.
Benefit #4: Combining Talent pools.
Yahoo! has some brilliant people. While not every idea played out effectively - the creativity of Yahoo's employees (including those over at Zimbra) are clearly additive to where Microsoft wants to go concerning social media, collaboration, etc.
Benefit #5: Derivative impacts to the enterprise