As an owner of Yahoo stock, Microsoft’s unsolicited bid of $44.6 billion ($31/share) to buy Yahoo didn’t come as much of a surprise. Yeah this would be the biggest deal Microsoft has ever done, but it’s one that makes a lot of sense for both companies. In an uphill battle to catch or compete with industry leader Google, both companies have struggled. The combination of the two companies would possibly level the playing field a bit. The combined company would have a 33% share of the search market – still trailing Google’s 60% – but better positioned overall. It’s always good to have competition in an industry. Surely the deal will be scrutinized for a while, but it should make things interesting if it’s accepted and approved.
What are your thoughts?
