Well it seems that last week Yahoo stocks dropped to a record low for the first time in four years. Since the takeover of Overture, they have been continually deteriorating in share price. Microsoft Chief Executive, Steve Ballmer, has made an offer to take over Yahoo to the tune of 44.6 billion dollars. Yahoo directors are looking into the offer now as it looks otherwise to be a sinking ship. Microsoft has promised shareholders $31 per share which is a 62% increase from the share price this past Thursday. Since Yahoo uses Microsofts technology to run their engines the shift should be quite painless.

Since Google controls around 60% of the US search market, it only makes sense for Yahoo to merge with Microsoft – this way they would be able to narrow the playing field and provide larger advertising service to compete with the big dog Google. In the last year Microsoft has reported a 79% jump in profits with their advertising, while Yahoo has been struggling to maintained a profit. Microsoft projects that they will be able to boost the ad revenue through this takeover, while at the same time cutting out the overlapping of positions within Yahoo.

The key benefit of the purchase per Microsoft is that it would be the best way to maximize value to the share holders and in turn create a more competitive front that would provide the value and service to their customers.

Well that is it for the techno news for today. Chow for now until next time.

(This is a recap of a breaking news story on February 1, 2008)

In today’s news, Google, Inc., has concerns about Microsofts proposed $42 billion acquisition of Yahoo and not for the reasons you would think. Google realizes there is more to this deal as it pertains to the worldwide internet search market. If Yahoo and Microsoft merge it would only account for 16% of the search engine market (which is no comparision for the 62% that Google holds). Google, Inc., opposition to the acquisition lays in the fact that Microsoft may try to incorporate the advanced online services Yahoo has developed into their Windows operating system setup; guiding new PC owners towards the services such as email and instant messaging. This move could stifle the innovations of other companies including Google.

Although Yahoo is currently reviewing the offer with their Board, most analysts believe there is little choice with its stock price near a 4 year low. The fact that Microsoft bid 62% above the market value of Yahoo indicates to some that this is a hostile bid. Most analysts doubt any other company will be able to top Microsoft’s offer.If Yahoo accepts, then both the U.S. and Europe antitrust regulators will need to review and approve the proposal, a process that could take up to a year. During that time Google may be able to setup plans for counteractive measures and better prepare for the merger.

Well that concludes our Tech News today so make sure to bookmark our site as we continually post new information.