Microsoft makes a bid for Yahoo!
Posted by Eradicator on February 02 2008 04:07:23
Microsoft has offered to buy the search engine company Yahoo for $44.6bn (£22.4bn) in cash and shares.
The offer, contained in a letter to Yahoo's board, is 62% above Yahoo's closing share price on Thursday.
Yahoo cut its revenue forecasts earlier this week and said it would have to spend an additional $300m this year trying to revive the company.
It has been struggling in recent years to compete with Google, which has also been a competitor to Microsoft.
See graph of Yahoo and Microsoft shares
In a conference call, Microsoft's Kevin Johnson said that the combination of the two companies would create an entity that could better compete with Google.
"Today the market [for online search and advertising] is increasingly dominated by one player," he said.