Why does microsoft want to buy yahoo??

Question

ok first things first im just a 17 year old student so I'm not exactly an expert when it comes to the financial world. But if you think about it, from an M&A perspective, the argument for acquiring Yahoo makes no sense. Common sense tells us that the first thing companies will cut back is advertising. So what benefit would microsoft be getting in return for their purchase? It just doesnt make sense to me.

Answer 1

They need to grab a larger slice of the Internet advertising and search market to stay competitive with companies like Google.

Answer 2

Because they are just greedy and want more money. i think they shouldnt.

Answer 3

for fun they have more than enough money