Yahoo Stocks up 10% on News of Takeover

Author: Jonathan Vizcarra
Published: October 07, 2011 at 5:13 am
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Yahoo shares went up 10% amidst rumors that Microsoft is considering taking over the firm. If true, this is Microsoft's second attempt at a takeover.

Aside from Microsoft, Alibaba has said that they might buy Yahoo. Alibaba is a Chinese based internet company that specializes in B2B, trade and other related business.

Yahoo shares jumped 10.1% to close at $15.92 and Microsoft shares ended 2.2% higher at $25.89. Current market value of Yahoo! is around US$ 20B which is less than half of what Microsoft bid for it in 2008. Microsoft offered US$ 45B in their previous offer.

Both Yahoo and Microsoft has not released any official comment.

At this rate, it's really hard to understand what Microsoft can attain from acquiring Yahoo. Obviously, Microsoft can reinforce their Bing search engine and combine it with Yahoo's. Bing has a 14.7% share while Yahoo has 16.3%. But with Google's 64% share of the search engine market, is $20B worth a 16% share increase?

 
 

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Article Author: Jonathan Vizcarra

Filipino. Aside from being a Brand Manager, Jonathan also writes for AdEdge,the trade magazine of the Philippine Association of National Advertisers (PANA). He was also a headwriter for a political TV show as well as TV segment producer.

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