Beijing time on May 21, according to foreign media reports, yahoo announced on Monday with $1.1 billion for the social blog bursts. So, where the deal originated? All of yahoo’s board meeting and discuss on the weekend? The following is according to people familiar with the transaction related news.
a few weeks ago, bursts and yahoo are traded on the possibility of merger and acquisition are discussed. According to a source, yahoo and soon the acquisition agreement, signed the agreement from the start talks to end, less than a month time.
in this nearly a month time, yahoo’s chief executive, Marissa Mayer (Marissa Mayer) spend a lot of time and the founder and chief executive David Karp (David Karp) to consult, to discuss the related issues of mergers and acquisitions, even several nights when it comes to very late. A source said: “mayer talks have been personally involved in the deal.” The source also claim that mayer has been also want to other strategic acquisitions. Allegedly, mayer in the deal personally spending a lot of time and energy is also contributing to karp sells bursts to yahoo is one of the reasons why.
the current acquisition agreement the two sides have signed by mayer to karp, the agreement that “yahoo for $1.1 billion cash for bursts of”. Karp does not require the agreement fully paid by cash. Mayer nor provides bursts of yahoo’s stake, a move that could because she thinks, yahoo’s shares are undervalued. Sources, if yahoo is not all in cash payment, the deal will be reached.
of course, karp I received some stake in the yahoo, yahoo offers karp the stake, karp and to continue to stay in yahoo.
in addition, there are sources said that Facebook was also want to bid for bursts, but did not disclose the source bursts with Facebook to discuss the information such as the transaction price.
on Friday, bursts of held a weekly staff meeting. Despite the merger rumors, but this meeting is not a particularly discussing a possible deal. In fact, if bursts will reveal the deal information to employees, it will damage the secret agreement. However, 10 o ‘clock on Monday morning (est), bursts of have the merger and acquisition news by E-mail notice to employees.
as for yahoo’s board of directors meeting at the weekend, a source revealed that the meeting is not to decide the fate of the bursts. Yahoo, in fact, as early as before the meeting has decided to buy bursts, and the meeting is just made the decision.
in view of the fact that in the past few months, bursts of traffic performance, more general, therefore, the industry has produced some questions: yahoo’s $1.1 billion acquisition card at the site, it is wise to choose? A source said: “I think this is a sensible deals, with a lot of traffic, which can be used to stabilize income. If yahoo can properly manage the website, I think there will be a great progress, this is for yahoo, like Google was the result of the acquisition of YouTube.”