This press release from Microsoft reveals that the gaming giant proposed a bid of $44.6 billion for an acquisition of Yahoo!. The multi-billion dollar bid would offer $31 per share, which according to Microsoft, "represents a 62 percent premium above the closing price of Yahoo! common stock on Jan. 31, 2008."
Yahoo! released a brief statement in response to Microsoft’s bid, stating that Yahoo!’s Board of Directors "will evaluate this proposal carefully and promptly in the context of Yahoo!’s strategic plans and pursue the best course of action to maximize long-term value for shareholders."
While Microsoft hasn’t mentioned them by name, many critics and gamers alike think this bid is in attempt for the two companies to battle against Google. Michael Gartenberg, analyst at Jupiter Research, mentioned that Microsoft is feeling Google’s pressure and a possible Yahoo! acquisition would stabilize Microsoft/Yahoo!’s presence back into the Internet.
"[It’s] clear that there is increased pressure on Microsoft from Google, and they recognize that. Way back when, Yahoo wasn’t that interested in a Microsoft deal. What a difference two years make. Microsoft has a pile of money, and Yahoo has experienced problems of its own. Ballmer, in the past, has historically not loved these types of deals. It is indicative of how different the world is now."
GamerNode will certainly keep you updated on what happens.
