Microsoft bids $44.6Billion for Yahoo!
Software giant Microsoft said Friday it had made an unsolicited offer to buy Internet
search engine Yahoo with a cash and stock bid worth $44.6 billion. Now thats a good price for a company that has had a share loss of around 30 percent of their value in the past year( Earlier this week, Yahoo announced plans to lay off 1,000 employees by mid-February).
What do you guys think of the offer? Is it possible for these two companies to join forces to try and topple Google from its lucrative first spot on the web? I don’t know if that can happen as Google has been smart about everything they do. It seems they have a magic orb and see everything one step ahead of the competition.
I don’t see this happening with the government being involved. Monopoly comes to mind when i read this article.
The offer allows Yahoo shareholders to elect to receive cash or a fixed number of shares of Microsoft common stock with the total purchase consisting of half cash and half stock.
Yahoo shares rose nearly 60 percent in pre-market trading on news of the approach, while Microsoft shares were down 2.6 percent, CNN Money reported.
The announcement comes with Microsoft and Yahoo seeking to compete with Google in the lucrative online advertising market, currently worth $40 billion and expected to grow to $80 billion within three years. “Google has been faster and smarter in realising what the Internet can do,” CNN International’s Financial Editor Todd Benjamin said. “Microsoft thinks Yahoo can help it leapfrog into this huge, huge market.” Read Todd Benjamin’s blog
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