The rumours have been settled. Microsoft has formally announced its intentions of acquiring Yahoo! . Leaving aside the complexity of the financial offer, one simple thing is Microsoft is offering $31 per share, a whopping 62% premium on the present share price of Yahoo!.
An excerpt from Microsoft’s press release …
Microsoft Corp. (NASDAQ:MSFT) today announced that it has made a proposal to the Yahoo! Inc. (NASDAQ:YHOO) Board of Directors to acquire all the outstanding shares of Yahoo! common stock for per share consideration of $31 representing a total equity value of approximately $44.6 billion. Microsoft’s proposal would allow the Yahoo! shareholders to elect to receive cash or a fixed number of shares of Microsoft common stock, with the total consideration payable to Yahoo! shareholders consisting of one-half cash and one-half Microsoft common stock. The offer represents a 62 percent premium above the closing price of Yahoo! common stock on Jan. 31, 2008.
But what does this mean for me ?
A bigger competitor for Google but no idea how effective the acquisition will be if at all it happens.
Whatever will happen to Yahoo! Mail, Yahoo! Messenger and Flickr, three services I use almost all the time.
What do you think of this acquistion ? Does Microsoft buying Yahoo! make sense ?
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