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Everyone knows that Google in the king of search engines. Even top companies like Microsoft and Yahoo haven’t been to shake it even a bit from its throne. And the latest news is that Microsoft has offered to buy the search engine company Yahoo for $44.6bn (£22.4bn) in cash and shares. This clearly shows how bad Microsoft wants to get Google down.
Both Microsoft and Yahoo have been suffering serious losses. Yahoo shares have fallen 46% since reaching a year-high of $34.08 in October. They closed almost 48% higher on Friday. 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. Same is with Microsoft as it closed 6.6% lower. So, this looks like Microsoft’s attempt to rise up and give Google some competition.
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.
Anyways, this was just an offer (a fantastic offer) and Yahoo is not compelled to accept it in any way. Yahoo still has to evaluate the offer carefully from their share holder’s view-point though Microsoft has made it clear that Yahoo shareholders could choose to receive either cash or shares. Even if Yahoo accepted the offer, competition authorities both in the
