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Microsoft to acquire Yahoo


Microsoft Chief Executive Officer, Steve Ballmer writes a letter to Yahoo Inc, proposing to buy the Search Engine for about $44.6 billion. Microsoft tries to take advantage of the difficult period Yahoo is facing and intends to get deep down into online advertising and breakdown the Google dominance.
An extract of the letter says;
“While online advertising growth continues, there are significant benefits of scale in advertising platform economics, in capital costs for search index build-out, and in research and development, making this a time of industry consolidation and convergence. Today, the market is increasingly dominated by one player who is consolidating its dominance through acquisition. Together, Microsoft and Yahoo! can offer a credible alternative for consumers, advertisers, and publishers”.
via [DealBook-New York Times]