Friday, February 1, 2008

Microsoft offers to buy Yahoo for 44.6 billion dollars

Microsoft Corp has made an unsolicited offer to buy Yahoo Inc for $44.6 billion in cash and stock, seeking to join forces against Google Inc in what would be the biggest Internet deal since the Time Warner-AOL merger.

In its boldest-ever acquisition move, Microsoft said on Friday it offered $31 per share for Yahoo, or a 62 per cent premium over the Internet media company's closing stock price on Nasdaq Thursday.

Yahoo, whose shares jumped to $30.75 in pre-market trading, confirmed on Friday that it had received an unsolicited bid from Microsoft Corp to acquire the company and that its board of directors would consider the $44.6-billion deal.

Yahoo said in a statement that its board would evaluate the proposal “carefully and promptly in the context of Yahoo’s strategic plans and pursue the best course of action to maximize long-term value for shareholders.”

Microsoft shares, which have a market capitalisation of about $300 billion, fell 6 per cent to $30.78. Speculation over a Microsoft move on Yahoo has swirled for at least a year, as investors wondered whether the two would seek a joint stand against an ever more powerful Google.

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