Microsoft and Yahoo

February 1, 2008

I was just surfing the net and I came across an article stating that Microsoft has made an offer to buy Yahoo. It’s from Digital Home Canada. Heres’ what it says.

Microsoft today announced that it has made a proposal to Yahoo to buy the company for $44.6 billion dollars. Microsoft is offering Yahoo shareholders the equivalent of $31 a share in cash and Microsoft stock.

Yesterday at closing their stock(Yahoo) was valued at $19.18. But has a result of the announcement  Yahoo’s stock price his increased by almost 50%. Microsoft’s stock has decreased by 6%. Is this a good deal for Microsoft?  According to a writer from the Scripting News , they say,”Nahh. It’s like the dead leading the blind.” However, one of our required readers,Scoble, who coincidentally is an ex-employee of Microsoft, says this,

This gets Microsoft back into the Web game in a big way and puts a defense around Microsoft’s Office cash-generating-machine. I bet that some of Yahoo’s smartest engineers get moved over to the Office team to help build an online Office that’ll keep Google’s docs and spreadsheets from getting major marketshare inroads.

I agree with Dave Canvin’s post, this also has the potential to put some pressure on Google and may cause a “Web War”. We finally have two of the biggest heavyweights in the modern world possibly going toe-to-toe. What will happen next? Stay tuned, same Bat time, same Bat channel.


Tony Elliott


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