In an attempt to meet Google’s competitive challenge head on, Microsoft has bid $44.6 billion dollars to acquire Yahoo. Yahoo, while still a premium Internet brand, has been battered by Google and is in probably its weakest position since it began. Microsoft offered $31 share, which represents a 62% premium over Yahoo’s last closing price. If approved, this would be one of the largest business takeovers in history. The implications of a combined Microsoft – Yahoo are enormous. Their combined leverage in software, search, Internet advertising, content, and mobile would create a behemoth of a company, quite capable of meeting Google’s growing dominance.
View a Microsoft PowerPoint presentation detailing the transaction here.