The High-Tech Texan Blog

Friday, February 01, 2008

Yodeling Paperclips

That could be the new icon for Microsoft if its proposed offer of $44.6 billion to buy Yahoo goes through. That news is rattling the Left Coast this morning from Seattle to Silicon Valley along with Wall Street.

The cash-and-stock bid was said to be unsolicited by Yahoo but it should not come as a surprise to the search engine's CEO Jerry Yang. Since he took over the reins last year from ousted leader Terry Semel, young Mr. Yang has been trying to make Yahoo as relevant when he and his partner founded the company in the mid-90s.

Both Microsoft and Yahoo - technology leaders in their respective categories for many years - have been losing ground, revenue and buzz to Google. This merger could be the only way that Microsoft finally catches up to Google with Internet traffic and ad revenue.

Yahoo stock was up over 51% to $28.96 in pre-market trading Friday. Microsoft stock is holding steady around $32.60.

No doubt we will keep a close watch on this story.

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