Microsoft wants Yahoo for $44.6 BILLION!
Just 5 mins ago from The Wall Street Journal, Microsoft announced that they have made a bid to buy Yahoo for USD$ 44.6 Billion, $0.4 Billion less than their 50 Billion bid in early 2007.
Microsoft Corp. Friday offered to buy Yahoo Inc. for $44.6 billion, a move designed to pick up a struggling rival as both companies are fighting in the online-advertising world with Google Inc.
The offer, $31 a share in cash and stock, is a 62% premium to Thursday’s closing price. Yahoo shares jumped to $29.45 in premarket trading. Microsoft closed at $32.60 and dipped to $32 premarket.
Is this a sign of a consolidation in the software and internet industry? Has Google frightened Microsoft by its potential global dominance on its Online OS and Office applications? Can the new Microsoft + Yahoo behemoth continue to innovate or get dragged down by its combined mass? Can a company ever be worth THAT much money? What ever it is 2008 will be a damn interesting year!
Edit: Bruce Nussbaum calls it “A Merger of the Weak“. But could two weaklings make a strong? Yahoo is still No. 1 on Alexia rankings and is still a site that offers many services, much of which Google has follow suit abet better. Perhaps its all about ageing Net Mafia Godfathers protecting their turf?