SAN JOSE CALIFORNIA
Google Time Warner?
Google Inc has made a hostile takeover bid for 50 million dollars to try and take over Time Warner Inc. A hostile takeover is when Google goes straight to the stockholders of Time Warner to make the offer to buy them out. Google decided not to do a regular takeover bid because of the fear that the Board of Directors of Time Warner might say no. The offer has not yet been accepted.
Dr. Eric Schmidt, the CEO of Google had this to say about the offer, "Google strikes while the iron is hot, and the iron is hot right now in the media industry. This is the correct move at the correct time for Google."
This offer also affects other companies such as Yahoo and Microsoft. Microsoft was also looking to buyout Time Warner but had not yet made an offer. On the other hand Yahoo, who's value is rapidly decreasing, was eagerly waiting and hoping for Time Warner to buy them out. This offer buy Google could change both of those options.
Of the 50 million dollars that Google is offering, 35 million of it is in cash, 10 million is in stock options, and another 5 million will be used for any assumed debt. This decision will come soon from the shareholders of Time Warner.
Dr. Eric Schmidt, the CEO of Google had this to say about the offer, "Google strikes while the iron is hot, and the iron is hot right now in the media industry. This is the correct move at the correct time for Google."
This offer also affects other companies such as Yahoo and Microsoft. Microsoft was also looking to buyout Time Warner but had not yet made an offer. On the other hand Yahoo, who's value is rapidly decreasing, was eagerly waiting and hoping for Time Warner to buy them out. This offer buy Google could change both of those options.
Of the 50 million dollars that Google is offering, 35 million of it is in cash, 10 million is in stock options, and another 5 million will be used for any assumed debt. This decision will come soon from the shareholders of Time Warner.
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