Microsoft Makes Fast Offer

Software powerhouse Microsoft has today made an official offer worth over $1.2 billion for Norway-based Fast Search & Transfer, in a move that could see the company move to acquisition over the course of the next few weeks pending the full approval of its shareholders after initial indications back the move.

Fast provides search technology services to business customers, and is publicly traded in Norway, with shares closing highly up on the announcement of the news that Microsoft has launched its formal approach for the company and its assets.

Additionally, the offer amount comes in at $1.2 billion, or £607 million and reflects a share premium of over 40% on the closing share price of last week, which the directors of the company have considered to reflect a good value proposition for the company’s shareholders.

The move has been seen as the latest in the developing battle for online marketshare between Microsoft and Google, particularly in relation to search services. With the ability to serve adverts contextually linked to the search content results, search engines like Google and MSN, owned by Microsoft, can raise substantial revenues from their freely available services.

However until now the dominance has lain with Google by some margin, commanding easily more than half of all search enquiries on the Internet, even powering ahead of major competitor Yahoo pushing Bill Gate’s software corporation into effectively 3rd place - a position that Microsoft has seldom had to overcome.

It remains to be seen whether the acquisition of Fast will help strenghten Microsoft’s position online with regards to the search market, and whether it will enable it to continue to expand to realistically challenge Google over the coming few years. With the industry looking for a “Google Killer”, Microsoft’s continuing momentum may help it to step up to the plate.

Story link: Microsoft Makes Fast Offer