I read about Microsoft's unsolicited offer for Yahoo Inc. (NASDAQ: YHOO) on their homepage yesterday and just finished reading another article from the AP this morning. This most recent article by Michael Liedtke described the unsolicited bid as "Microsoft trying to force crippled rival Yahoo Inc. into a shotgun marriage" and considering Microsoft Corp. (NASDAQ: MSFT) was rebuffed in a previous offer last year, they sure are proving a persistent suitor, but it'll be hard to ignore a $42 billion offer.
The offer comes on the heels of Yahoo company Chairman Terry Semel stepping down from the Board of Directors last month. Mr. Semel, then chief executive, declined the previous offer by Microsoft, so with this obstacle removed they're making another overture. Yahoo's Board released a statement that they "will evaluate this proposal carefully and promptly in the context of Yahoo!'s strategic plans and pursue the best course of action to maximize long-term value for shareholders."
Microsoft is clearly threatened by Google's 62% control of the worldwide search market and their supremacy in generating revenue from advertising. Microsoft has also got to be concerned about Google's momentum to provide online software services like Google Apps that rival Microsoft's packaged software.
So, is this a good thing for the struggling Yahoo? Microsoft has already admitted that their foray into the online arena has not been as successful as they would like. Will an acquisition of Yahoo give them the edge they need to challenge Google?
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