Posted 4:45 p.m. MST, March 7, 2007
Palo Alto, CALIF. - Google Inc. (GOOG) formerly delivered a hostile takeover bid to Time Warner Inc. (TWX). Google has been looking at their options for some time, and they are interested in expanding. Eric Schmidt, CEO and Chairman of Google said that “to merge that userbase, I think would be beneficial to both the producer and consumer.” The bid was placed for $50 billion dollars in cash, stocks, and debt.
Richard D. Parsons, CEO of Time Warner, reported that they had not yet made the decision on whether or not to sell the company, but they taking this bid very seriously. Parsons said that the board would be sitting down to calculate it and see what amount they think Time Warner is worth. Time Warner has 30 days to decide what its decision is, and Parsons said that they would have an answer by then.
Microsoft (MSFT) was apparently talking to Time Warner about purchasing AOL. Chair of the Board at Microsoft, William Gates said that “it is more streamlined to have everything under one roof.” Google apparently offered Time Warner $35 billion in stock, $10 billion in cash and $5 billion in debt. Eric Schmidt said, “ I think that this is an opportune time to take advantage of the two companies … I think that it is long overdue.” It is unknown as to whether the FCC will step in to prevent a monopoly.
1 comment:
Nice job! Your story was very informative and well written, especially in the amount of time we had.
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