Microsoft intends no major layoffs after buying Yahoo!

Microsoft Corp. maintains that it would not lay off large number of employees if it succeeds in taking over the popular website operator Yahoo Inc. the software giant is aiming at creating a stronger force by merging the cultures and resources of the two companies. In doing so, it is believed that employee opportunities would be abundant and people will not be required to leave.

Kevin Johnson, president of Microsoft's platforms and services division, sent an e-mailed message to the employees sharing "a perspective of the process going forward."

"We look forward to a constructive dialogue with Yahoo's board, management, shareholders, and employees on the value of this combination and its strategic and financial merits," Johnson wrote.

"Once Yahoo and Microsoft agree on a transaction, we can begin the integration planning process in parallel with the regulatory review."

The Sunnyvale, Calif.-based Yahoo had turned down Microsoft's 44.6-billion-dollar bid for the veteran Internet firm on February 11. Reportedly, Microsoft is inexorable and is planning an aggressive takeover bid if directors in Yahoo’s board refuse to change their mind.

Yahoo on the other hand, is endeavoring to remain out of the reach of Microsoft and in order to defend itself the company has been exploring different options including alliances with Google, Time Warner-owned America On Line, and social networking website MySpace, which is owned by News Corp.

A number of Stock holders of Yahoo sued the firm for declining Microsoft’s offer last year, when the prices were higher.

Microsoft’s current offer for Yahoo translates into a combination cash and stock deal initially valued at 31 dollars per share but it ebbs and flows with the price of Microsoft shares.

Yahoo's board is said to believe the worth of the company is at least 40 dollars per share. At that price Microsoft would have to increase its payment by more than 10 billion dollars.

Both companies lag Google, which rules the online search and advertising market and Microsoft believes on joining forces with Yahoo, it can outshine the search giant, which has criticized Microsoft's takeover bid as an attack on the freedom of the Internet.