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This is after all a very interesting story or rather a news! Microsoft has offered to buy Yahoo Inc for $44.6 billion!
The News:
In the previous years also Microsoft had offered to buy out Yahoo, but they were declined by Yahoo. But this time it seems Yahoo is quite interested about the offer and will certainly look into it. The directors will consider the offer on behalf of the shareholders.
Microsoft have valued Yahoo at $44.6 billion which is more than 61% of its present value at Nasdaq! This offer is certainly going to be viewed at very closely.
Why The Offer:
Both Microsoft and Yahoo have been gradually left behind by Google in all the fields it has been playing out! Be it advertising, emailing, social netwroking and ofcourse the search! Google have slowly but surely kept eating into the market share of both the companies. Google`s ability to understand netizens` demand and have provided services accordingly. They are very advanced than those other 2 rivals by quite a big margin.
The Effect:
If this deal finally takes place, then it will be good for both the companies. Microsoft will get a larger market share in all the categories - advertising, email, search, visitors, etc. And Yahoo will be saved from further sliding down the ranking.
The research and development, employees, etc can be integrated to get more synergies out the operations. Thus achieving economies of scale, thus saving cost!
Google will also have a very consolidated competitor. Which in turn will make to work more harder and bring out more and innovative products and services!
The Outcome Of All:
The ultimate outcome will of ofcourse more and more better products and services for us- the customers!! We will continue to enjoy more hassle free services and products, better customer care and we will keep running towards everything-is-free, except for the hardware!!
Source: Various media.
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