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FAQ: What you need to know about Microsoft's proposed takeover of Yahoo

Time: 01:37 EST/06:37 GMT | News Source: ComputerWorld | Posted By: Kenneth van Surksum

Baffled by Microsoft Corp.'s push to acquire Yahoo Inc.? These frequently asked questions provide the lowdown on the contest for the Internet company.

Does a Microsoft-Yahoo deal make sense? Probably. As separate companies, Microsoft and Yahoo duplicate systems and staff. Microsoft CEO Steve Ballmer said a merger could save $1 billion annually. According to industry observers, the time is right because Yahoo's stock is down, and the company hasn't improved its results even after co-founder Jerry Yang took over as CEO in the middle of last year. Plus, Microsoft's offer, initially 62% over Yahoo's share price, is a very good deal for Yahoo shareholders.

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