Microsoft wants Yahoo

Category internet, Business, Technology | Permalink | 1. February 2008

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microsoft yahoo In a bold move to counter Google’s online pre-eminence, Microsoft said Friday that it had made an unsolicited offer to buy Yahoo for about $44.6 billion in a mix of cash and stock.
If consummated, the deal would redraw the competitive landscape in Internet consumer services, where both Microsoft and Yahoo have both struggled to compete with Google.

The offer of $31 a share represents a 62 percent premium over Yahoo’s closing stock price of $19.18 on Thursday. It would be Microsoft’s largest acquisition ever.

Yahoo said in a news release Friday that its board would evaluate Microsoft bid “carefully and promptly in the context of Yahoo’s strategic plans.”

Microsoft said the combination of the two companies would create efficiencies that would save approximately $1 billion annually. The software giant also said that it has an integration plan to include employees of both companies and intends to offer incentives to retain Yahoo employees.

“We have great respect for Yahoo, and together we can offer an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market,” said Steven A. Ballmer, Microsoft’s chief executive, in a statement.

“We believe our combination will deliver superior value to our respective shareholders and better choice and innovation to our customers and industry partners,” he said.

Microsoft said it planned to work closely with Yahoo’s board as they evaluate the offer.

Source and More : NyTimes

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