Microsoft bids for Yahoo! at USD$44.6 billion. February 4, 2008Posted by stvchang in Microsoft, tech news, tech stuff.
Steve Ballmer CEO have sent a letter to Yahoo!’s board of directors, persenting a formal offer of USD$31 per share for the company. This merger will cost Microsoft USD$44.6 billion at that offer price, with Mr. Ballmer stating “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.”
“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.” he adds. Microsoft’s current move is seen as their move to counter the threat of Google’s market share in search engines.
Yahoo! have yet to respond to the “merger agreement”, while Google’s David Drummond, senior VP of corporate development (and the company’s chief legal officer) says that he worries the acquisition of the internet portal by a company that has “frequently sought to establish proprietary monopolies” could “extend unfair practices from browsers and operating systems to the internet.” His concern centers around the possibility that the combination of the two monoliths could “unfairly limit the ability of consumers to freely access competitors’ email, IM, and web-based services.”
Seems Google is anxious to keep their lead on their ad revenue, but this is going to be a very interesting watch over the next few months.