Competition for users on the cyberspace is really hotting up. With Google getting more and more popular, Microsoft is desperately trying to acquire online entities with large user bases. Yahoo which has been traditionally profit making dot com with a large userbase was the obvious choice for the world’s largest software maker.

Microsoft has made an offer to acquire leading internet firm Yahoo! Inc for about $44.6 billion to leverage its position in the online services market, reports PTI from New York.

World’s richest person Bill Gates-founded Microsoft said its $31 per share offer values Yahoo at about $44.6 billion in cash and stock. The takeover bid for Yahoo comes amid a below-expected fourth quarter performance and growing competition for the two companies from fast-growing Google in the online market.

The online advertising market is growing at a fast pace, from over $40 billion in 2007 to nearly $80 billion by 2010. With Google emerging as one of the biggest beneficiary of this market, the analysts believe that a combination of Microsoft and Yahoo was imminent to take on the competition from the internet search giant.

Source: Deccan Herald