Microsoft proposes to buy out Yahoo!: Big fish to swallow

Microsoft Corp. has proposed to buy out Yahoo! This news comes recently after Yahoo reported cutting jobs due to decreased profit margins.

Microsoft is already known very well in the desktop and enterprise server space. it has been trying to make a dent in the web application with its Live & MSN Services.. search, messenger, mail and a host of other services have been coming from time to time.. Yahoo is an ideal company to acquire to fill in the gaps in the internet space.

Microsoft has been playing underdog in Online Advertising space which is dominated by single company - Google. if Yahoo is acquired, then Microsoft would be in a position to seriously challenge the online advertising giant Google.

There is a lot of synergy that the content networks of both companies can leverage on..

the acquisition proposal is based on $31 (US) per share for Yahoo in a transaction that would value at approximately $44.6 billion (US) in cash and stock. this is at a 62% premium to its share value on Thursday..

Microsoft is not new to making acquisitions from a diverse set of companies.. integration with Yahoo would present a huge challenge and a test of all the acquisition skills that Microsoft has built up till date..

More information here: http://biz.yahoo.com/ap/080201/microsoft_yahoo.html

Yahoo has not yet accepted or declined the offer.. so what are your bets on successful acquisition?

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Comments

Anonymous said…
well google should be a bit scared~~~as yahoo and msn wat a kick ass combination~~~~but still in search area google is second to none

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