Rumors come true, Microsoft submitted an official offer to buy Yahoo for $44.6 Billion, price that presents $31 per share, 62% over Yahoo’s closing price, 19.18$. Microsoft is making tremendous efforts to carry out this deal, in order to stay a major internet player and to be able to compete Google in the growing online advertisement and searching markets. Microsoft CEO, Steve Ballmer said: “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.” The bid was submitted after Yahoo announced the cutting of 1,000 jobs and reported 8 consistent quarters of dropping shares value. With the anticipation for a difficult year, Yahoo’s board of directors might accept the offer, though we hear the company is not in a rush. Yahoo shares responded with increasing of 47.9%.
Update: Google is reluctant with current developments. Google’s official blog, attacking Microsoft for the hostile bid to acquire Yahoo and raises troubling questions:preliminary comment in
“Could Microsoft now attempt to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC? While the Internet rewards competitive innovation, Microsoft has frequently sought to establish proprietary monopolies — and then leverage its dominance into new, adjacent markets.”
…”Could a combination of the two take advantage of a PC software monopoly to unfairly limit the ability of consumers to freely access competitors’ email, IM, and web-based services? Policymakers around the world need to ask these questions — and consumers deserve satisfying answers.”