Microsoft buys Yahoo? The Internet is swarming with rumors that the Software Giant is buying Yahoo to compete with Google - a leader in search engine advertising industry. As off now, there’s 57,700,000 search for the term “Microsoft buys Yahoo” in Yahoo search, 25,400,000 in Microsoft Live Search and 267,000 in Google search.

Many of you might be asking what’s the new name will be, will they come out with the new inovative Internet tools and will that be enough for them to take on Google? According to Microsoft, they have a plan to integrate employees and “retain” key Yahoo Engineers and the top people.

According to CNN: Earlier this week, Yahoo announced plans to lay off 1,000 employees by mid-February, citing what CEO Jerry Yang described as “headwinds” facing the company. It also reported lower fourth-quarter earnings — though still ahead of Wall Street’s modest expectations for the firm.

In conference call Friday morning, Microsoft Chief Executive Steve Ballmer indicated he won’t take no for an answer after Yahoo rebuffed takeover overtures a year ago.

“This is a decision we have _ and I have _ thought long and hard about,” Ballmer said. “We are confident it’s the right path for Microsoft and Yahoo.”

To underscore its resolve, Microsoft is offering a 62 percent premium to Yahoo’s closing stock price Thursday. If the deal is consummated, it would be by far the largest acquisition in Microsoft’s history, eclipsing last year’s $6 billion purchase of online ad service aQuantive.

- Bismarck Tribune

Should they merge? Anyway, this merge would obviously give Google a run, and this got to be an exciting 2008!

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