Practice News Story #8:Business
October 31, 2007
Madison Hintze
Google Inc. Makes Shocking Offer to Time Warner Inc.
PALO AlTO, California-An unexpected hostile bid was made my Google to Time Warner. Google has offered to buyout Time Warner for the lump sum of $60 billion. Richard D. Parsons, CEO of Time Warner said, “ We don’t even know how they (Google) came up with the $60 billion offer.” Time Warner has had previous discussions about mergers; however, an actual buyout option had not come up until this point.
As for Google, Eric Schmidt, CEO and Chairman of Google, said, “We don’t have a top notch facility to produce content, Time Warner does.” Google started out as an information search engine, they now want to be known as a content provider. Purchasing Time Warner would allow this to happen. Google has definitely overpriced the buyout figure with $60 billion. Schmidt said, “We’ve overpriced the value in their stock-we wanted to make the offer more appealing.” The large amount has been broken down and will be paid in $10 billion cash, $45 billion stock, and $5 billion in assumed debt. Google added the $10 billion cash as an eye-catcher in the offer.
As for the thoughts from Microsoft and Yahoo; Terry Semel, CEO and Chairman of Yahoo and Steve Ballmer, CEO of Microsoft, would not make any comments in regard to the surprising hostile offer.
Paul Kim, an Industry Analyst said that Time Warner would be foolish not to accept the offer from Google. Kim said, “As for the whole industry, it seems to make sense. It may be another match made in heaven that goes to hell, but I don’t think so.”
Time Warner is in no rush to make a decision. Such a big offer and huge industry change will take time.
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4 comments:
There were a few small gramar problems in the first paragraph. I also don't know if industry analysis should be capitalized. But your work is very long considering the amount of time we had. Good job
Hey for your first story on business you did a way good job. You must be a really fast typer! I wish i could do that !
Yo Madison, that was a good one I think. I feel like i write the same thing in every comment. You know the one thing I would change is that you needed to explain a little of the background of why microsoft wouldn't make a comment, and why we even wanted their comment you know. OK see you later!
Really good job, It was a really good sized story for such little time we had. I also liked your extra news article on this story. Both are really great writting!
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