Will Microsoft buy Yahoo?

Microsoft has offered to buy the search engine company Yahoo for $44.6bn (£22.4bn) in cash and shares.

The offer, contained in a letter to Yahoo’s board, is 62% above Yahoo’s closing share price on Thursday.

Yahoo cut its revenue forecasts earlier this week and said it would have to spend an additional $300m this year trying to revive the company.

It has been struggling in recent years to compete with Google, which has also been a competitor to Microsoft.

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.

So what are your thoughts on this? Will a Microsoft/Yahoo partnership be a good or bad thing for the average internet user or do you think that such a move will only make Microsoft into a bigger monster?

Posted by: Simon

[Post tag(s): smartphone blog, Pocket PC blog, Tracy & Matt, Microsoft, Yahoo]