According to the Wall Street Journal, large cap bellwether Microsoft Corp. (NASDAQ: MSFT) has offered to buy search engine Yahoo Inc. (NASDAQ: YHOO) for around $45 billion. The proposed deal, a 60% premium to yesterday’s closing price, works out to around $31 / share.
Competing with Google
Undoubtedly, the move is a play to gain traction in the search engine space and compete, according to Microsoft, in a market “increasingly dominated by one player”. Come to think of it, I wonder if there are any opportunities for competition in the PC operating system or web browser space? Those seem to be markets dominated by one player as well…hmm. Seriously though, the deal probably makes sense and could ultimately give Google a run for its money if it goes through.