|
|
Aims to combat competition from Google in the online services market
New York: World’s largest software maker Microsoft yesterday offered to acquire leading internet firm Yahoo! Inc for about $44.6 billion with an aim to leverage its position in the online services market.
Bill Gates, founder of Microsoft said its 31 dollars per share offer values Yahoo! at about 44.6 billion dollars in cash and stock.
The takeover bid for Yahoo comes amidst a below-expected fourth quarter performance and growing competition for the two companies from fast-growing Google in the online market.
The online advertising market is growing at a very fast pace, from over 40 billion dollars in 2007 to nearly 80 billion dollars by 2010.
With Google emerging as one of the biggest beneficiary of this market, the analysts believe that a combination of Microsoft and Yahoo! was imminent to take on the competition from the internet search giant.
The speculation about the merger of two giants have been doing the rounds for a few months .
The combined entity would create a more competitive firm, providing superior value to shareholders, better choice and innovation for customers and partners, Microsoft said.
Microsoft’s proposal would allow Yahoo! shareholders to OPT cash or a fixed number of Microsoft shares, with the total consideration payable to Yahoo shareholders consisting of one-half cash and one-half Microsoft common stock.
The offer represents a 62 per cent premium above the closing price of Yahoo! shares on January 31.
Microsoft said it intends to offer significant retention packages to Yahoo! engineers, key leaders and employees across all disciplines.
The offer was disclosed first through a letter sent to Yahoo! Board of Directors on January 31 by Microsoft CEO Steven Ballmer. Indicating a previous attempt as well to acquire Yahoo!, Ballmer said, “In February 2007, I received a letter from your chairman indicating the view of the Yahoo! board that now is not the right time from the perspective of our shareholders to enter into discussions regarding an acquisition transaction.”
|
| Author: ashish 05 Feb 2008 | Member Level: Diamond Points : 1 |
If MICROSOFT buys YAHOO! it would be a nice contest.
|
| Author: Sushil Kumar Patial 05 Feb 2008 | Member Level: Gold Points : 2 |
OK. Ashish. If Microsoft buys Yahoo! then what kind of steps Microsoft will take to improve its service. Please discuss, by which reason Yahoo is being over coming by Microsoft?
|
| Author: rajasekhar 06 Feb 2008 | Member Level: Gold Points : 2 |
i think that is a rumor,there is no need to buy yahoo for microsoft.both are big companies.now there is a healthy competition between them.i hope that will continue
|
| Author: Sushil Kumar Patial 06 Feb 2008 | Member Level: Gold Points : 5 |
The offer was disclosed first through a letter sent to Yahoo! Board of Directors on January 31 by Microsoft CEO Steven Ballmer. Indicating a previous attempt as well to acquire Yahoo!, Ballmer said, “In February 2007, I received a letter from your chairman indicating the view of the Yahoo! board that now is not the right time from the perspective of our shareholders to enter into discussions regarding an acquisition transaction.”
Dear Rajshekhar, Kindly read these lines again so that you can understand the real cenario.
|
| Author: ashish 06 Feb 2008 | Member Level: Diamond Points : 3 |
Sushil, IN US google has poorest market sharing that is they have only 42% of the entire market as compared to other countries(Spain where they occupy 99% market).
If Microsoft aquires yahoo then it would be nice contest between 2 bullies and also it would end the 'big brother' image of google.
|
| Author: Deepu 07 Feb 2008 | Member Level: Diamond Points : 1 |
Is that true.its the first time im hearing this.
|
| Author: Sushil Kumar Patial 11 Feb 2008 | Member Level: Gold Points : 1 |
Yes it is true. However this tussle will go long. So, let us see the game of business.
|