02 February, 2008

Will Microsoft acquire Yahoo?

Microsoft has offered to buy search engine company Yahoo for $44.6 billion in cash and shares.
Both Microsoft and Yahoo are having a great competitor Google. Google competes Microsoft as a software company, and also competes with Yahoo as a search engine company.
Kevin Johnson at Microsoft said that the combination of the two companies Microsoft and Yahoo will create a better entity to compete with the Google.

"Today the market [for online search and advertising] is increasingly dominated by one player"
Yahoo is loosing its profit since Google emerged to the market.

Yahoo's falling profits
  • Oct to Dec 2007 down 23%
  • July to Sept 2007 down 5%
  • April to June 2007 down 2%
  • Jan to March 2007 down 11%

Yahoo confirmed that the board will evaluate the proposal and pursue the best cause of action to maximum long-term value for shareholders.

Also the competition authorities in the US as well as the European Union would be likely to investigate the tie-up.

LETS SEE what will happen!

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