Microsoft and Yahoo: Does It Make Sense

KNOWLEDGE @ WHARTON— On Friday, February 1, Microsoft announced it was making an unsolicited bid to acquire Yahoo for $44.6 billion in cash and stock, a 62% premium over Yahoo’s stock price at the time. If the deal is completed, it would be the largest acquisition in Microsoft’s history and, the company hopes, would jumpstart its struggling Internet search and advertising businesses, as well as add to its online portfolio a number of popular web sites such as Flickr, Yahoo HotJobs and Yahoo Personals. Read article.