Microsoft offers $44.6 Billion to acquire Yahoo!

Mircosoft made an unsolicited attempt to acquire Yahoo! for $44.6 Billion. Obviously, both the software giant and the Internet media giant are currently struggling to compete effectively with Google in the Internet search advertising industry, with Google’s market share increasing its lead over them with each passing day. The offer effectively means that the price per share for Yahoo! is $31 and it is a 62% premium over Yahoo’s current $19. The offer sent Yahoo!’s share soaring to ~28 a share by the end of trading day.

Obviously this saga is not going to end soon. I am pretty sure Yahoo! will now mull over the offer, maybe ask for a higher price ($50 – $60 B?) and then Microsoft might come back with a counter offer. Whatever happens, it has definitely marked the beginning of an interesting phase for Yahoo!. With layoffs within Yahoo! confirmed, it emphasizes the need for Yahoo! to get its act straightened out.

What do you think? – is it better to take the offer or not?  – let me know.

— Thyaga


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