Microsoft offers to buy Yahoo for $44.6 billion

By on February 1, 2008, 8:10 AM
Rumors turned out to be true, Microsoft this morning made a bid to acquire Yahoo for a record-setting $44.6 billion in a deal that, if completed, could significantly boost Microsoft’s presence in the search engine market and shake up the competitive and lucrative market for online advertising – two areas where both Microsoft and Yahoo have failed to mount a real challenge to Google.

A deal with Microsoft would also be a great outcome for Yahoo shareholders, who have grown increasingly frustrated with Yahoo's stock performance. The offer represents a 62 percent premium above yesterday’s closing price of Yahoo common stock and would allow shareholders to elect to receive cash or a fixed number of shares of Microsoft common stock.

User Comments: 2

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icye said:
I wouldn't be surprised if the government gives strict conditions on how Microsoft acts before giving the green light to the acquisition of Yahoo.
howzz1854 said:
i don't think it's like that. it's not like there's no competition at all. Google is still by far the most powerful search company and if goes through, microsoft will have their work cut out for them. plus, it's not like microsoft will completely wipe out the Yahoo executives and let the software engineers run it. they're still keeping the same share holders and same company, it'll just be under the microsoft branch. now if Microsoft were to successfully aquire google, then that'll be a different story of possible anti-trust violation.
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