So, the decisive step is done: Microsoft Corp. has made a bid to buy Yahoo Inc. for $44.6 billion, in order to better compete with Google Inc. If Yahoo! agree, it will be the problem of the U.S. Justice Department to check if this deal complies with the antitrust rules, especially that Microsoft is already under federal oversight for a previous antitrust settlement six years ago.
Yahoo‘s stock was near a four-year low Thursday at $19.18. Microsoft‘s offer is $31 per share, a 62 percent premium. Friday morning, Yahoo shares rose 45 percent to $27.71, up $8.53. Microsoft shares fell to $30.80, off $1.80, or 5.5 percent. Google shares were trading at $515.70, which is a decline of $48.60, or 8.6 percent.
In accordance with SFGate, Microsoft said in the letter: “Today, the market is increasingly dominated by one player who is consolidating its dominance through acquisition. Together, Microsoft and Yahoo can offer a credible alternative for consumers, advertisers and publishers.”
Yahoo said it 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.”
As it seems from the Microsoft stuff declarations, they appreciate a lot the Yahoo! brand, but there will be no Microhoo!, nor, Yasoft, and no more Yahoo!. Just Microsoft.
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