Microsoft has officially released a bid of $44.6 billion to acquire Yahoo.  The struggling Yahoo stated Friday that they would carefully and promptly review the Microsoft bid.  It is no surprise that Yahoo will consider the Microsoft bid as stock prices have fallen by 46% since October and shares have recently reached a four year low.   

The thriving Microsoft can leverage this opportunity to edge closer to Google in several ways. The Yahoo acquisition will provide Microsoft with an enhanced advertising platform, give them resources in areas such as video, mobile services, and social platforms, and it will provide them with additional market share in the competitive search engine space.

News of the acquisition sent Yahoo share prices up Friday morning, opening at over $28 a share. This is a gain of 47% over yesterday’s closing price of $19.18.

In related news, Yahoo’s CEO Terry Semel stepped down last night and this is seen as plus for Microsoft as Semel has previously expressed disinterest in such a merger.  

This is no doubt big news for the search industry. MSN has struggled lately to add to, and even hold, search engine share. If Microsoft successfully acquires Yahoo, this will certainly change the game.

More to follow…
 

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