Microsoft offers to purchase Yahoo

According to a recent BBC news update, Microsoft has offered to purchase Yahoo for a whopping $44.6bn, which is 62% above Yahoo's closing share price on Thursday. Yahoo is struggling to fight competition with rival Google, but its ambitions have been thwarted in the recent years. Yahoo's exigence is evident from its recent announcement of slashing 1000 jobs.

The deal would revive Yahoo of its financial crisis. The reaction to the news is clearly indicated by the Yahoo's stock quotes:

Source: Yahoo Finance

Microsoft certainly wants its share of the web. The alliance with Yahoo will help Microsoft to contend with rival Google and forestall its attempt of monopolizing the web. Microsoft has been vying for profits from web for a long time. If this deal works out, it may be a step closer to Steve Ballmer's ambition for Microsoft:

We won the desktop. We won the server. We will win the Web. We will move fast, we will get there. We will win the Web.