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Friday, February 01, 2008
Microsoft offers to buy Yahoo!
A lot has been going on lately in SEO, from a new google bomb to Microsoft offering to buy out Yahoo!
Apparently the offer was not solicited by Yahoo!, but nevertheless, Microsoft has approached the company with a cool 44.6 billion dollar offer. It is important to note that Microsoft's offer was a significant premium over Yahoo's current stock market value (31$ a share). The day before the offer Yahoo!'s stocks were at around 19 dollars a share and the offer jumped the prices today to 28 dollars a share.
The union of both companies could mean a great deal of changes in the Search Engine industry which has been dominated by Google for a few years now. Microsoft presents the offer as a positive change for both companies: they have offered to retain Yahoo!'s employees and boast that the fusion would save more than 1 billion $ annually. With Yahoo! stock shares losing value, a 1000 job cut and the controversial election of Jerry Yang as chief executive, the 44.6 billion dollar offer might finally turn Yahoo! around.
For SEO companies and their clients, this offer does not mean much for now since Yahoo! has not accepted or declined. But in the long run, a merger of Microsoft and Yahoo! may finally create real competition for Google and change the face of SEO.
More info:
Microsoft's offer to buy Yahoo!
Yahoo's stock value
Microsoft's stock value
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