Microsoft Makes $44.6 Billion Offer to Buy Yahoo
Posted on February 1, 2008Microsoft has made a surprise $44.6 billion offer to buy Yahoo at $31 per share share.
Yahoo issued a statement saying they would consider the offer. Yahoo said that its board "will evaluate this proposal carefully and promptly, in the context of Yahoo's strategic plans, and pursue the best course of action to maximize long-term value for shareholders."
Microsoft CEO Steve Ballmer said they could help Yahoo compete: "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,"
Yahoo recently laid off over 1,000 employees. They are a great company with numerous online products including several recently purchased social media sites like Blo.gs and del.icio.us. They also have a significant media side with original content and acquisitions like Rivals.com. It will be interesting to see whether Microsoft can convince Yahoo shareolders that this is the best option for them or whether Yahoo shareholders believe the company can do better by staying independent.
Yahoo's shares (YHOO) are up over 44% on news of the deal reports Marketwatch.
Google shares are down significantly on the news because of concerns that a Microsoft-Yahoo merger could threaten Google's search and online advertising dominance.
Google shares are down 9% on the news in early trading today.