Microsoft to Buy Yahoo for $44.6 Billion

Now Google will have something to chew on.......!!!!!!!

"We have great respect for Yahoo!, and together we can offer an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market," said Steve Ballmer, chief executive officer of Microsoft. "We believe our combination will deliver superior value to our respective shareholders and better choice and innovation to our customers and industry partners."
The latest financial results posted by the Sunnyvale Internet giant feature a consistent loss, with profit dropping to $660 million for 2007, down from $751 million in 2006. Yahoo was even preparing to lay off a reported 1,000 workers of its 14,300 workforce, after the poor financial results of the past year. Microsoft's proposed acquisition offers shareholders a 62% premium to current trading price for Yahoo! The Redmond company has presented its proposition to Yahoo's Board of Directors.

In its race to become the runner-up on the search engine and online advertising markets, Microsoft is about to give Google a little something to chew on. The Redmond company is looking to buy Yahoo for no less the $44.6 billion. Microsoft has just announced the proposed acquisition of Yahoo for $31 per share. According to current estimates, the transaction is valued at no less than $44.6 billion and Microsoft is to offer both cash and stock. Yahoo has been increasingly losing its position on the search engine market, as well as its audience eroded by social networks.