Microsoft has offered to buy the search engine company Yahoo for $44.6bn (£22.4bn) in cash and shares. Yahoo has been struggling in recent years to compete with Google, which has also been a competitor to Microsoft.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.Today the market [for online search and advertising] is increasingly dominated by one player," he said."It is a shotgun marriage, but the person holding the shotgun is Google".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 shares have fallen 46% since reaching a year-high of $34.08 in October. On Friday they closed almost 48% higher.
No comments:
Post a Comment