Microsoft offers to buy Yahoo! for $44.6 Billion - Orbitcast

Microsoft offers to buy Yahoo! for $44.6 Billion

| 6 Comments

Yahoo and MicrosoftMicrosoft has offered to buy Yahoo! in an unsolicited bid, for $44.6 billion.

Consisting of both cash and stock, Microsoft's bid values Yahoo shares at $31 a share, a 62% premium on yesterday's closing price.

Yahoo! is Sirius' music partner for the Stiletto, but beyond that this also would consolidate two big players in Internet Radio. Yahoo runs the popular LAUNCHcast service, and Microsoft has MSN Radio (which is powered by Pandora).

Microsoft's main motivator behind this is search engine competition and advertising mojo, stating that the "resulting benefits of scale along with the associated capital costs for advertising platform providers make this a time of industry consolidation and convergence. Today this market is increasingly dominated by one player. Together, Microsoft and Yahoo! can offer a competitive choice while better fulfilling the needs of customers and partners."

I wonder if their merger will take as long as Sirius-XM? Something tells me it won't.

[Engadget, TechCrunch]

6 Comments

man the offers been a long time in coming...sofar the only thing i see on personel cuts is this bit

By Antony Bruno, Billboard

Internet giant Yahoo announced it plans to cut 1,000 jobs as part of a restructuring that has been long rumored. Exactly where the cuts will come was not revealed, but said it will come from "low profit" areas. Rumors have been swirling that the Yahoo Music division could be seriously affected.

this shit is big..espn is reporting this on there ticker on the bottom of the screen

Neither Microsoft or Yahoo can compete against industry leader Google on their own, and combined they still won't come close to Google's almost 60%+ market share of searches. Yahoo still has a ton of eyes though as they are the leading Internet portal but how that will translate into bringing a true challenge to Google is a big unknown, especially considering Microsoft's utter failure in search technology in the past. This is a move that was predicted 2 years ago and only now has come to fruition due in part to present day economic woes and overall downward trend of the stock market.

Sounds like another merger we all know....

I think this puts pressure on the FCC and DOJ to approve the XM Sirius merger. Microsoft butters pockets and this one will get approved. If they do this and deny XM Sirius, they will be exposed as the useless hypocrites they are!

If they cannot do it without Yahoo they cannot do it with them.