Yahoo! has been having some trouble lately. After reporting massive drops in revenue this year, Microsoft has offered to buy it out for a massive $44.6 billion. Apparently, the unsolicited move will create stronger competition for Google.
It hasn’t been a great year for the struggling company. Yahoo! shares fell 46 percent in October and have been steadily dropping since. Meanwhile, CEO Jerry Yang announced a restructuring plan. Restructuring? Try “massive downsizing.” The move will boot about 1,000 people from the company. Microsoft expects to change that downward trend, however, and hopefully revive the third-rate web portal.
Ironically, after quickly Googling Google’s stock price, the first result from Yahoo! Finance indicates the company’s stock is hovering at just over $500 per share.
It doesn’t seem clear yet as to if this buy out will save Yahoo!, create competition for Google, or both. Microsoft has its own search service, which will either have to merge with Yahoo!’s or be scrapped completely to create a consolidated searching solution that rivals Google’s prowess.
As of yet, this is just an offer. However, analysts believe it will become a reality in no time considering Microsoft is offering 62 percent more than Yahoo!’s current share price.