On February 1st, Microsoft put in an unsolicited $44.6 billion bid to buy Yahoo, which comes out to $31 a share. That’s 62% more than Yahoo’s closing price on January 31st. The bid sent Yahoo’s sagging stock price soaring. Now Yahoo execs are examining the new proposal.
Apparently Microsoft has been in negotiations to buy Yahoo for over a year, and the software company claims that the two companies could see a $1 billion dollar annual savings and an increased market share by joining together, putting them in a position to take on Google. The question is, will Microsoft and Yahoo get so distracted by their negotiations that they give Google even more of an edge?