Whitehatmedia News

02/02/2008  |  Microsoft looking to buy Yahoo

Industry giants Microsoft and Yahoo are in talks about Microsoft buying Yahoo. For some time now Microsoft has been trying to get a stronger position in the Search industry but have spent many millions has little to show for it. By buying Yahoo, Microsoft would get a foot up by taling over the mutiple assets Yahoo has in this sector.

The current offer by Microsoft was made by letter and was for $44.6 bn (£22.4 bn) and was 62% above Yahoo's current share price.It is likely that if the Board of Yahoo accept the offer that Competition authorities in both the US and the EU will investigate the tie-up.

Jerry Lang, the Yahoo chief executive had already announced that 1000 staff were being laid off as part of re-structuring plans. Yahoo shares have dropped 46% since October but increased by 48% after the announcement of the offer.

There is some concern over the level of the offer with the financial sector divided on opinion as to what the value is. The concern is based on the lack of perfomance that Yahoo has shown against Google in the last twelve months even after re-engineering its offer.