Microsoft is lining up a hostile takeover of internet giant Yahoo, in a move worth a mind-boggling $44.6 billion.
The offer is a massive 62% above Yahoo’s closing share price yesterday. Their shares have been tumbling in recent months and this could represent a major breakthrough for the ailing company.
The deal is aimed at stifling Google’s domination of the web and offering punters a decent choice when it comes to search, mail and myriad net services.
Analysts, however, say that Microsoft is offering too much and that Google still holds all the cards when it comes to the worldwide web. Some are even calling it a desperate move by the Big M to impose themselves on the net.
Microsoft tried to buy Yahoo a year ago, but they resisted. Now it seems likely that they will buckle.
If the deal does go through, Microsoft would inherit Yahoo Mail and Flickr. Whether punters, not to mention competition commissions in the EU and US, would be happy with the deal remains to be seen.