Microsoft is striking as Wall Street has grown increasingly disillusioned with Yahoo. It signaled that a combination of
the two companies would provide stronger competition for Google, the leading Internet search engine. It says the proposed combination could generate synergies and would benefit from economies of scale
in the online advertising market.
Henry Blodget, the former technology analyst, says on his blog: "This is a brilliant move by Microsoft--a big premium dangled in front of battered Yahoo shareholders, but a price that would have seemed absurdly low as recently as six months ago." He expects that the offer will be accepted.