Microsoft and Yahoo! get official

Subject: General Tech | February 1, 2008 - 09:52 AM |
Tagged:

Want to know today's big news before your friends?  Its the formal announcement of an acquisition ATTEMPT from Microsoft on Yahoo for $44+ billion dollars.

Microsoft just announced what has been rumored forever:
a formal offer for Yahoo. Microsoft's proposal to Yahoo's board of
directors represents $31 per share (a 62% premium over yesterday's
closing price) or about $44.6 Billion. Steve Ballmer, CEO and big fan
of developers, says, "We have great respect for Yahoo!, and together we
can offer an increasingly exciting set of solutions for consumers,
publishers and advertisers while becoming better positioned to compete
in the online services market." Apparently, the deal was laid out in a
letter sent by Ballmer to Yahoo's board just yesterday. Seriously. The
letter confirms that the two giants have been discussing the topic
since late 2006. It also appears to be a direct response to the Google
threat as outlined in the following paragraph:

"Today, the
market is increasingly dominated by one player who is consolidating its
dominance through acquisition. Together, Microsoft and Yahoo! can offer
a credible alternative for consumers, advertisers, and publishers."

The
deal, of course, rests with the two coming to a "merger agreement" and
Microsoft (and Yahoo to a limited degree) having the time to conduct
the required due diligence. Microsoft is ready to begin immediate
discussions and have a draft merger agreement ready for consideration.
So Yahoo, ball's in your court. The world is wondering... what will you
do?

Source: engadget
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