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Steve Balmer, Chief Executive Officer of Microsoft, has announced its intention to acquire Yahoo Inc for US$44.6 billion. This move is understandable as Microsoft is loosing out to Google in the search engine race. Google is growing leaps and bounds since its IPO in 2004.

Corporate mergers and acquisition seem to be the trend these days. Big corporations are on buying spree to acquire small companies at lighting speed these days. Most companies cannot grow organically and the other option is to acquire other businesses to boost their bottom line.

If this acquisition goes through, it will be the largest ever for a technology company. Jerry Yang will retire a very rich man and he has secured the wealth enoughfor the next few generations.

Let’s see how this acquisition will work out.