Friday, March 21, 2008

Practice News Story 8: Business Extra

Thursday, March 20, 2008
Google Strikes and Makes Bid for Time Warner

SAN JOSE, Cal.- Media industries have had quite a stir this week as Google Inc. (GOOG) has made a hostile takeover bid for the purchasing of Time Warner Inc. (TWX) Google has offered a grand total of $50 billion dollars in cash and stocks.

The offer has been broken down into three payments. $35 billion would immediately be given to stockholders in cash, $10 billion in stock, and the remaining $5 billion would be debt. The offer has not been accepted at this time.

Google is confident in their offer and industry analysts are hopeful. Google CEO, Dr. Eric Schmidt stated, “Google strikes while the iron’s hot, and the irons hot right now in the media industry. However, Yahoo! Inc. (YHOO) and Microsoft Inc. (MSFT) are feeling a bit of discontent over the offer. Yahoo had high hopes of being bought out by Time Warner before Google made their hostile bid. Microsoft had also been contemplating the purchase of Time Warner but didn’t act in time. As they always say, the early bird gets the worm.

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