Microsoft bids for yahoo

well the title says it all. I was just watching cnn. And i saw the news breaking. It says Microsoft is offering 44.6 bn dollors for yahoo.
I am quoting cnn from here

In a statement, Yahoo acknowledged receipt of the offer and said its board would evaluate the proposal "carefully and promptly."
The deal would pay Yahoo shareholders $31 a share, which represents a 62% premium from where Yahoo stock closed on Thursday.
Microsoft's statement said the offer allows Yahoo shareholders to elect to receive cash or a fixed number of shares of Microsoft common stock, with the software giant's offer consisting of one-half cash and one-half Microsoft common stock.
Shares of Yahoo (YHOO, Fortune 500) shot up nearly 60% in pre-market trading on the news, while shares of Dow component Microsoft (MSFT, Fortune 500) tumbled 5%.
Both Microsoft and Yahoo have fallen far behind rival Google (GOOG, Fortune 500) in the lucrative field of Internet search. Yahoo's earnings and share of the online search market have badly trailed Google.
In a letter it sent to Yahoo's board of directors, Microsoft disclosed it had explored a Microsoft-Yahoo deal a year earlier, only to be rebuffed by Yahoo, which said at that time it was confident of the "potential upside" for Yahoo from operational changes it planned.
"A year has gone by, and the competitive situation has not improved," Microsoft CEO Steve Ballmer wrote.

source CNN

if this thing works out internet world is going to shake up. Watch out google.

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  1. Navin

    February 2, 2008 at 2:03 PM

    I just featured that news on my next blog and here it is.. wow, it's becoming quite a buzz..


  1. Nabin

    February 2, 2008 at 5:32 PM

    Is this move against google? Rumors say so: but no one has estimated its huge impact.

  1. Navin

    February 3, 2008 at 12:01 AM

    may be strategy.. microsoft had to bid their cash along with stock to buy Yahoo.
    Else, it would have bought Google too.. hahahahahha. Google is G G I A N T for microsoft.


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