It is Yahoo! (NASDAQ: YHOO)'s own fault. The new management did nothing good for the company, and the share price kept falling. Now Microsoft (NASDAQ: MSFT) has offered a 66% premium to buy the internet portal. The combination would create a company with more visitors than any internet operation in the world.
From the press release:
Microsoft has offered to acquire all the outstanding shares of Yahoo! common stock for per share consideration of $31, representing a total equity value of approximately $44.6 billion. Microsoft's proposal would allow the Yahoo! shareholders to elect to receive cash or a fixed number of shares of Microsoft common stock, with the total consideration payable to Yahoo! shareholders consisting of one-half cash and one-half Microsoft common stock. The offer represents a 62 percent premium above the closing price of Yahoo! common stock on Jan. 31, 2008.
Douglas A. McIntyre is an editor at 247wallst.com.