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| | Wold's largest software manufacturer Microsoft made its intentions to acquire Yahoo for 44.6 billion dollars in cash and stocks. It is 62 percent more than the market value of Yahoo. Analysts have already termed the offer price excessive and Yahoo stock price increased by 60 percent.
Approximately a year ago, company Yahoo refused to merge with Microsoft, but Bill Gates's company, nevertheless, decided to once again make an attempt. Probably, Microsoft hopes for success this time around for the reason that, Yahoo is going through trying period because of huge competition from Google. Yahoo - second on popularity list of search engines in the world and its creators offer various services, combined with Internet-portal.
Microsoft informed, that it offered 31 dollar for the share of Yahoo. Thus, premium constitutes 62 percent of closing price at stock exchange Nasdaq on Thursday. Immediately after the announcement, stocks of Yahoo increased by more than 60 percent and crossed the 30 dollars mark.
Acquisition (takeover) offer was already informed to board of directors of Yahoo, Bill Gates's company suggests to pay off in cash or in exchange of stocks. In 2007, net profit of Yahoo touched 660 million dollars and revenues of 6.97 billion dollars.
"We very much respect Yahoo and together, we can offer extremely outstanding solutions to our clients, editors and advertisers at the time we reach more advantageous position in online-services market" – states steve Ballmer, General Director of Microsoft, in his statement.
Microsoft states that it identified four merger types with Yahoo. Annual income of such synergy will constitute not less than 1 billion dollars, experts of the company expect. No comments were made by Yahoo.
Experts note that news about the deal will support the stock market as market is not indifferent to big deals. Through absorption of Yahoo, Microsoft hopes to compete with Google and would it be possible for Microsoft, argue the analysts.
“I am in a shock. Premium, which they have offered, I consider is exorbitant. Personally, I do not see how Microsoft-Yahoo can affect Google. But it will render good support to stock market - as a whole, the stock market adores big transactions and we already see sharp growth of future contracts. As on today, entire attention is given to this transaction, considering the condition, in which the market is going through. If in such a situation, we make transactions in financial or technological sectors, it casts spell over the market, that’s what we observe today ", - quotes Reuters Tim Smalls from Executon LLC.
"It eclipsed all events and led to sharp growth of future contracts. For the stock market, it undoubtedly is important news. For a long time, market looked for something similar and it has reduced importance of yesterday's news from Google. I think, this deal is meaningful on the backdrop of hard times for Yahoo, due to heavy competition from Google. I do not see anybody who could offer more than Microsoft", - states Paul Mandelson from Windham Financial Services. |
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Surprising news this Friday - Microsoft offered to buy Yahoo for $44.6 billion. The Microsoft's takeover of Yahoo is meant to put massive financial injections into the development of Yahoo search engine and advertising solutions, in order to shake Google's dominance in Google in search engine niche and advertising markets. Yahoo Inc. shares went up massive 60 percent while Google Inc. shares suffered a free-fall of 8 percent.
