Microsoft wants to buy Yahoo!

Microsoft is now making move in acquiring Yahoo! share, in an attempt to prevails the internet search market over the predominant leader, the big G. The insanely huge $44.6 billion bid was proposed by Microsoft in seeing their better survival.

According to its letter to Yahoo, Microsoft attempted to enter talks about a deal a year ago, but was rebuffed because Yahoo was confident about the "potential upside" presented by the reorganisation and operational activities that were being put in place at the time.

"To me, the premium seems exorbitant, for what is a dwindling business," said Tim Smalls from the brokerage firm Execution LLC. "I personally don't see how the synergies of Microsoft-Yahoo is going to take on Google." Other analysts were more enthusiastic about the offer.

"It is a fantastic offer. It is game on," said Colin Gillis from Canaccord Adams. "This consolidates the marketplace down to Google versus Microsoft. These two companies will be going head to head."

"A year has gone by, and the competitive situation has not improved," Microsoft's letter said.

With Yahoo! total return in 2007 drops 32% and with Yahoo chief executive, Jerry Yang himself announced recently that he intended to lay off 1,000 staff as part of a restructuring plan, the bid seems to be on the right time and place. However, with the aggressive overture by Microsoft which required Yahoo! execs to respond in 2 days or Microsoft will go public, made a turning point to Yahoo! to seek all other options but Microsoft.

I still hope the the acquisition will go on even the chance seems to be slim (according to the latest update). I'm wondering what changes would be on the net.

References:

- Two days to response or else

- Microsoft wants to purchase Yahoo!

- Microsoft wants to buy Yahoo!