Microsoft To Buy Yahoo For £22.4 Billion – How Much?
Blurb by Shaun Anderson (Hobo) -Microsoft has offered to buy the search engine company Yahoo for £22.4bn ($44.6bn) in cash and shares.
The offer, contained in a letter to Yahoo’s board, is 62% above Yahoo’s closing share price on Thursday. Yahoo cut its revenue forecasts earlier this week and said it would have to spend an additional $300m this year trying to revive the company. It has been struggling in recent years to compete with Google, which has also been a competitor to Microsoft.
“This consolidates the marketplace down to Google versus Microsoft. These two companies will be going head to head.”
In the search industry, this is hardly a surprise. But even combining referrals from Yahoo and Microsoft, they are still virtually insignificant compared to the amount of traffic sent to most websites by Google. It was just a matter of time before Microsoft took this action, but this alone won’t be the answer to challenge the dominance of Google as the number 1 search engine, no matter how much many would like it to.
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Hey Shaun,
Unbeleivable really. You might not want to post this link but I also wrote a bit about it here. This is mainly looking at the possible jobs loss and post acquision integration which may ensue.
The writing’s been on the wall for some time for Yahoo!
Looks as though Microsoft are taking the gloves off now and if there is one technology company in the world that knows how to fight dirty its evil Bill’s.
This is unreal—although I really only believe that it was a matter of time. I’m glad someone is stepping up to the plate to integrate some new intense competition for Google. It will be a challenge for Microsoft, but it’ll be interesting to see how it all plays out.