Friday Microsoft made a audacious move to buy Yahoo for $44.6 billion. Microsoft wants to take hold of the largest share in internet services which Google currently has. With a $31 a share this would be Microsoft's most expense purchase. The two companies working together would annually save $1 billion. Yahoo replied to the request saying they would look over their company's strategic plans. After reviewing negotiations and watching their shares for a year Microsoft believes the only way they can compete with Google is to combine their company and Yahoo. Secret meetings between the two companies continued throughout the year but some Yahoo board members disagree with the emergence because of Yahoo's new advertising system that could help to raise shares. Yahoo's stock continues to fall. Microsoft has also struggled with Google's dominance. They recently paid $6 billion for an advertising specialist called aQuantive. They are continuing to grow but still not profitable. Nonexecutive chairman Mr. Semel announced Thursday that he was leaving the Yahoo board after serving on it from 2001 to 2007. Roy J. Bostock was named the new chairman. I believe both companies can not overtake Google without combining. It is crucial if both companies do not want to see their shares to continue to go down.
http://www.nytimes.com/2008/02/01/technology/01cnd-subyahoo.html?hp
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