nternet search behemoth Google has raised 'competitiveness' issues against Microsoft's decision to acquire the beleaguered Yahoo for a consideration of US$ 45 bn. In terming the software giant as using 'hostile' means to curb competition, Google has raised concerns that the acquisition of Yahoo could allow Microsoft 'to extend unfair practices from browsers and operating systems to the Internet.' As a matter of fact, Google leads the Internet search space by a wide margin, having a share of 62%, compared to a share of 13% of Yahoo and just about 3% of Microsoft. In fact, Google has itself been termed as a 'monopolist' when it comes to the Internet business and smaller firms have welcomed Microsoft's proposal for Yahoo as it is seen as a way that will pare the dominance of Google.
The fact that Microsoft, the world's largest software maker has offered US$ 31 per share for acquiring Yahoo - a 62% premium over the latter's last Thursday closing price indicates the seriousness with which the former is pursuing its Internet growth strategy, as its software business growth seems to be tapering off. Whatever be the case, Microsoft's high bid also indicates that stocks in the US, especially those from the technology pack, have gotten cheap, for reasons mentioned below.
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