Microhoo! ? Yasoft? Whatever next…

February 1, 2008

So finally after months of speculation that this was coming (me too) Microsoft have bitten the bullet and written a letter (via Guardian) to the Yahoo board to show their intention to buy them.

It’s a handsome offer as well, $44.6B in cash and shares, that’s 62% up on Yahoo’s closing share price from yesterday. I guess this means MS are really serious, I’m sure they could have put in a lower bid but this bid should make it very difficult to turn down by Yahoo as it’s extremely attractive to their shareholders. I hope it’s the right play for MS sake, if it’s not and Yahoo really is slowly dying as many have said then they could be buying a very expensive load of traffic.

There’s a very brief response from Yahoo here

A conference call is being held at 8.30 EST in the U.S., should be more news after that. Techcrunch UK rightly mentions that a deal this big will see a great deal of scrutiny from Euro regulators (possibly putting Google/Doubleclick in the shade).

Will a deal like this produce a competitor for Google? Well maybe in terms of traffic and eyeballs but not in terms of search relevance, advertising technology, ad dollars earned, innovation or any of the other good things you can measure such companies on. This could get interesting!

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