Friday, 1 February 2008

Microsoft to buy Yahoo for $45 billion

After months of speculation, Microsoft has finally made an offer for rival Internet player Yahoo in a move thatis clearly designed to enable to pair to take on the might of Google.

The $31-per-share bid, a staggering 62% premium on Thursday's closing price of $19.18, according to Dow Jones Newswires, values the cash and stock deal at a massive $44.6 billion.

“We believe our combination will deliver superior value to our respective shareholders and better choice and innovation to our customers and industry partners,” said Microsoft CEO Steve Ballmer on Friday.

The software giant went on to note that the fast-growing online advertising, predicted to reach $80 billion by 2010, "is increasingly dominated by one player."

Watch out Google!

For more detailed information on the Microsoft/Yahoo megadeal, see Total Telecom.

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