In a recent move Microsoft has made an offer to the Yahoo stakeholders an offer equating to more than a 60% premium on their shares. Given the not to impressive earnings announced the stock price of Yahoo shares has been a little depressed making it an ideal target for a takeover.

The figures quoted for the purchase of the shares is $44 billion. Microsoft has been battling Google for 4 years in the lucrative search market. Whilst in my opinion their search results are marginally better the take up of their product is still relatively poor. If accepted this would put Microsoft’s share of search above 20% of the market. 

Not only that but Yahoo is one of the highest visited real estates online, when you consider this activity follows on from the significant share purchase Microsoft made at Facebook and with online advertising spend being forecasted to increase to $80 billion by 2010, “me thinks Microsoft are getting their ducks in order”