bloggingbuyouts

Sheldon suggested the other day that Microsoft Corp. (NASDAQ: MSFT) should split off its web search and services arm so that it could fit better with a possible Yahoo, Inc. (NASDAQ: YHOO) combination. Instead of entertaining that notion, Microsoft still has some cash to spend to ensure, for now at least, it still has a growing presence in the web search and e-commerce arena.

To that end, the company announced this morning that it will spend $486 million to purchase Greenfield Online, Inc. (NASDAQ: SRVY) as it swiped an earlier takeover offer from the Quadrangle Group with its $15.50 per share offer. Microsoft's offer of $17.50 per share is a 10% premium over Greenfield's closing price this past Monday, when the offer was received without Greenfield knowing the origin. That is, until today.

Microsoft wants control of www.ciao.com, one of Europe's leading price comparison shopping search engines. Does Microsoft really think owning a leading consumer review and price shopping search engine will bolster its Microsoft Live platform? Since it couldn't compete in the U.S. against Google, Inc. (NASDAQ: GOOG), perhaps Microsoft is turning to international purchases as a second competitive act. Greenfield also has an "internet survey solutions" division that Microsoft will sell to an undisclosed buyer.

The Microsoft (NASDAQ: MSFT) proposed acquisition of Yahoo! (NASDAQ: YHOO) may be taking a new twist.

The talk is now all over after-hours that Microsoft may be reevaluating its buyout offer for the troubled search and online media operator. This can be interpreted as a threat to walk away or it can be interpreted as a threat to lower the bid.

The companies did meet earlier this week, but to no avail. There are media reports on this on CNBC and on Dow Jones but one should still consider this one hearsay if it was evidence being presented in a court.

Or it may just be a negotiating tool to show Jerry Yang that he's up the creek with no paddle if Microsoft just quits its offer. Jerry Yang better be considering how this will affect his position not just Yahoo! for now. Shareholders may revolt here, and understandable so. There will be more data over the weekend, and some of it may actually be based on fact rather than hearsay.

See the Full Story from 247Wallst.com.

Garmin Ltd. (NASDAQ: GRMN), a designer and manufacturer of navigation, communication and information devices, is recently up $4.11 to $107.82 on unconfirmed Microsoft Corp. (NASDAQ: MSFT)takeover chatter. Dow Jones reported American Technology raised its rating on GRMN to Neutral from Sell. GRMN call option volume of 14,448 contracts compares to put volume of 3,027 contracts. GRMN October option implied volatility of 58 is above its 26-week average of 42 according to Track Data, indicating larger price risk.

TJX Companies Inc. (NYSE: TJX), an off-price retailer with 1,530 T.J. Maxx & Marshall stores, is recently up 40 cents to $29.49 on unconfirmed LBO chatter that Thomas H. Lee and Bain will announce a $38 tender offer for TJX. TJX October 30 calls have traded 88 times on transaction volume of 2,764 contracts. TJX October option implied volatility of 38 is above its 26-week average of 28 according to Track Data, suggesting larger risks.

Daily M&A Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

For the last 24 hours or so, rumors that Microsoft Corp. (NASDAQ: MSFT) may be looking to place a bid for Research In Motion, Ltd. (NASDAQ: RIMM) have been floating to the top of the M&A bowl. It's easy to note that rumors about RIM happen every week, but what makes this one so different? Many, many things.

Microsoft's recent attention to making its Windows Mobile platform entrenched into the market for handheld Smartphones continues to indicate how highly the company places mobile technology in its future growth strategy. By now, it's pretty obvious that companies like Motorola, Inc. (NYSE: MOT), Microsoft and Google, Inc. (NASDAQ: GOOG) all believe that the future of the internet is in the mobile customer's hands. Yes, we'll always have wireless-enabled laptop computers, but for those growing masses who want the office in their pocket, small Smartphones and like devices are just now beginning to see widespread popularity. It will blossom into a huge market from here.

Unless the price is just too high, Microsoft's acquisition of the best-known name in mobile computing would allow it to gain a very loyal customer base almost instantly, but the company could not just dump RIM's exclusive software and email "push" capability in favor of its own. Both RIM and Microsoft now have systems to automatically push received email to customers in the mobile field in real-time. They are direct competitors.

By buying its largest competitor in this space, Microsoft would own the market for Smartphone-based applications and push email, ahead of European-based Symbian. Microsoft's only problem: RIM's market cap is nearly $47 billion. But with rumors fueling Google's entry into the wireless space in full force soon, Microsoft may again be forced to act in the endless arm wrestling with the internet search giant.

When software virtualization company VMware Inc. (NYSE: VMW) went public this week and shares went directly into the stratosphere, the concept of "virtualization" suddenly became part of the common media jargon overnight. VMware basically sells products that create "virtual" computing environments from vast, interconnected resources. Why have a bunch of local and unused computing machines when you can string resources together and attain quite a bit more efficiency?

Well, VMware's IPO dust has settled, and Citrix Systems didn't spare a breath in announcing the $500 million acquisition of software virtualization company XenSource. Call this the week of virtual bops in the market.

Fresh off the completion of advertising company aQuantive, Microsoft Corp. (NASDAQ: MSFT) has just completed the largest acquisition in its history at over $6 billion. Is it ready for another one? Some analysts are pegging the possible acquisition of Citrix Systems (NASDAQ: CTXS) by the software giant based on how Citrix Systems has grown in the past (largely by having access to Microsoft's source code to build its own software), as well as the relationship XenSource already has with Redmond. Is a buyout in the air?

There are probably some technical issues that prevented Microsoft from acquiring XenSource itself, but by gobbling up Citrix after it completes swallowing XenSource, Microsoft could stand up pretty well in an instant in the software virtualization field -- and it definitely has the cash. Although Microsoft has been called a laggard and accused of lacking innovation for quite some time, the software company shows a decent bit of forward-thinking with its recent aQuantive acquisition and this rumor (a good one) of a forthcoming Citrix Systems buy. Is Redmond dead any time soon, as many Google Inc. (NASDAQ: GOOG) fans are fond of predicting? I highly doubt it.

Disclosure: I own MSFT shares as of 8-16-07.