“Microsoft Corp. has pounced on slumping Internet icon Yahoo Inc. with an unsolicited takeover offer of $44.6 billion in its boldest bid yet to challenge Google Inc.’s dominance of the lucrative online search and advertising markets,” Michael Liedtke reports for The Associated Press.
“The surprise offer of $31 per share, made late Thursday and announced Friday, comes with Sunnyvale-based Yahoo in a vulnerable position,” Liedtke reports.
“With its profits steadily sliding, Yahoo’s stock slipped to a four-year low earlier this week and a new management team has been trying to steer a turnaround sees more turbulence through 2008,” Liedtke reports.
“In a letter to Yahoo’s board of directors, Microsoft Chief Executive Steve Ballmer… revealed in the letter that Yahoo had rebuffed a previous overture a year ago, saying it had a turnaround in the works. But he pointedly noted Yahoo has instead deteriorated significantly. ‘A year has gone by, and the competitive situation has not improved,’ Ballmer added,” Liedtke reports.
MacDailyNews Take: But, Microsoft can fix it — they’re doing so well with search on their own. In November 2007, Google Sites share of core searches stood at 58.6%. Yahoo! Sites ranked second with 22.4%, followed distantly by Microsoft Sites with 9.8%, Ask Network (4.6 percent) and Time Warner Network (4.5 percent). Source: comScore.
Liedtke continues, “Ballmer said Microsoft expects Yahoo’s board will review its proposal, but ‘reserves the right to pursue all necessary steps to ensure that Yahoo’s shareholders are provided with the opportunity to realize the value inherent in our proposal.'”
Full article here.
Microsoft’s press release and the text of the letter that Microsoft sent to Yahoo!’s Board of Directors can be seen via InformationWeek here.
[Thanks to MacDailyNews Reader “John” for the heads up.]
MacDailyNews Note: Apple’s iPhone and iPod touch currently utilize Yahoo’s search (along with Google), push email, weather services, and stocks. All of which, one would imagine, would easily replaced by Google and/or Apple (free .Mac email?) if need be.