Tuesday, April 01, 2008

Microsoft's offer to Yahoo Inc.

Microsoft Corp doesn't see any reason to raise its offer for Yahoo Inc. Two months ago, it went to a $44.6 billion offer to purchase the Internet company. Microsoft and Yahoo administrative had met once to talk about a possible fusion in view of the fact that Microsoft acquired its $31-a-share for Yahoo on January 31. Although some speculations say that Microsoft is planning to raise its bid. Microsoft also believes that the recent offer is fair. Because a recent road show by top Yahoo executives, intended to shore up support among U.S. institutional investors and prove the bid was too low, was “underwhelming,” one of these people said. Yahoo has rejected Microsoft’s offer which valued at $42 billion last February, declaring it “substantially undervalues” the company.

Microsoft Corp. wants to buy Yahoo to simply compete with Google. Google has established a great niche in the net. I do believe it would take a long time to really beat Google. Just my own opinion.

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