GOOGLE ANNOUNCES HOSTILE TAKEOVER
Posted 11:56 p.m. MST, Thursday, March 8, 2007
PALO ALTO, Calif. - Google Inc. (GOOG) top executives announced a $50 billion hostile takeover bid to Time Warner Inc. (TMX) today, March 7, 2007.Google has offered Time Warner $35 billion in cash, $10 billion in stocks, and $5 billion to pay off their debt.CEO of Time Warner, Richard D. Parsons, said that the offer was just received and was very "unexpected.” The board will need to meet and discuss how much the company is worth before coming to a decision.If in fact the bid is accepted, the FCC will need to investigate this merger in order to prevent a monopoly from forming.
Eric Schmidt, CEO of Google, said they have been interested in expanding Google some time. They have looked at their stock value, estimated value of Time Warner Inc. and have offered them more than what we think they are worth. “This is an opportune time to take advantage of the potential of these two different companies,” Schmidt said.
Microsoft Inc. (MSFT) chairman, William Gates, said that he “never would have guessed,” that these two companies would possibly merge. That is because Microsoft had made an offer to purchase Time Warner.
Time Warner Inc. will have 30 days to come to a final decision and will have one by then.
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