Microsoft has offered $44.6 billion dollars to buy Yahoo, or about $31 a share. $31 a share for Yahoo is 62% above Yahoo’s closing price of $19.18 yesterday and in today’s trading the stock price has jumped all the way up to $28 today upon news of the bid.
What does Microsoft’s bid for Yahoo mean for search engines? I think it would give Microsoft a much stronger base from which to compete with Google, but I think that in the end it will end up reducing Yahoo’s user base as people who oppose the Evil Empire switch to Google- which has become an evil empire in it’s own right. Neither search engine has really monetized search properly, so a strong shakeup could help Live.com and Yahoo.com’s search technologies. Another issue is that Yahoo has started moving recently to become more of a content provider than anything else. I am curiously watching the merger to see how it progresses.
Any thoughts on implications of a Microsoft takeover of Yahoo?