Yahoo and Microsoft are two giant company in the world. They capture a huge part of IT industry. Today the news headline from different sources found that Microsoft has offered to buy the Yahoo for $44.6 Billion in cash and shares.When I find this news, I didn't believe. But in Digg.com published this news mentioning differnet websites. At last I find this news from BBC and CNN.BBC Says-
Microsoft wants to purchase Yahoo
Microsoft and Yahoo are both struggling to compete with GoogleMicrosoft 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.
It is a shotgun marriage, but the person holding the shotgun is Google
Tim Weber, business editor, BBC News website
What's at stake, who will win?
"Today the market [for online search and advertising] is increasingly dominated by one player," he said.
Chairman quit
Yahoo confirmed that it has received an unsolicited offer and said that its board would evaluate the proposal, "carefully and promptly in the context of Yahoo's strategic plans and pursue the best course of action to maximize long-term value for shareholders."
If Yahoo accepted the offer, competition authorities both in the US and the European Union would be likely to investigate the tie-up.
Yahoo chief executive, Jerry Yang, announced on Tuesday that he intended to lay off 1,000 staff as part of a restructuring plan.
Terry Semel, who stepped down as chief executive last June, also quit as non-executive chairman on Thursday.
Microsoft said that Yahoo shareholders could choose to receive either cash or shares.
YAHOO'S FALLING PROFITS
Oct to Dec 2007 down 23%
July to Sept 2007 down 5%
April to June 2007 down 2%
Jan to March 2007 down 11%
Yahoo share price
Microsoft share price
Google share price
Yahoo shares have fallen 46% since reaching a year-high of $34.08 in October. They opened 51.2% higher.
Microsoft opened 4.3% lower while Google shares fell 6.8%.
"Ultimately this corporate marriage was forced by the rise of Google, which has grown into a serious competitor for both Microsoft as a software company and Yahoo as an internet portal," said Tim Weber, business editor of the BBC News website.
"It is a shotgun marriage, but the person holding the shotgun is Google."
'Exorbitant premium'
According to its letter to Yahoo, Microsoft attempted to enter talks about a deal a year ago, but was rebuffed because Yahoo was confident about the "potential upside" presented by the reorganisation and operational activities that were being put in place at the time.
"A year has gone by, and the competitive situation has not improved," Microsoft's letter said.
But there has been some concern about the price that Microsoft is offering.
CNN- News
Microsoft was making a $44.6 billion bid to buy Yahoo was greeted with skepticism by many CNN.com users on Friday.
Microsoft is offering to buy struggling Internet search pioneer Yahoo.
The word "monopoly" came up repeatedly in e-mails from people concerned that Microsoft would stifle competition in the Internet search field.
Other readers said that Microsoft and Yahoo were a perfect fit and the deal would be good for consumers.
Shaun Carney said the deal would even help arch-rival Google.
"I think the increased competition this merger brings will force Google to stay on top of its game by offering more innovative Internet tools and expanding on the tools it already offers," he said.
