The Microsoft Corporation has offered to buy out Yahoo Inc., the one-time mega search engine that has been sidelined by the mother of all searchers, Google. This could spell relief for some of those working for Yahoo since the online company was preparing to layoff a good portion of its staff.
Bill Gates’ software/gaming company is putting $44.6 billion in cash and stock options down on the table in its bid to become a prominent player on the online markets. They believe having Yahoo under their company’s umbrella will put them in good standing to offer the only real competition to Google and smaller engines such as Ask.com. Separately Microsoft and Yahoo are no threat to Google’s top of the hill position, however, some money people are banking that combined and managed properly, this buy-out (or merger) could give Microsoft a competitive edge. Google currently enjoys a worldwide market share of 75%. That is phenomenal when the number of internet users around the globe are considered.
“We see this announcement as the company’s next major milestone to embrace online services,” Steve Ballmer, Microsoft’s chief executive officer, said during a conference call this morning. “The Windows experience needs to increasingly embrace the Internet,” Ballmer added. “When you combine the strengths of our two companies, the results will be very competitive.”
Under terms of the proposed deal, Yahoo shareholders could choose to receive cash or Microsoft common shares, with the total purchase consisting of 50 percent each cash and stock, according to CBS News.
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