Microsoft in shock $44.6 billion bid for Yahoo

Source: Exec Digital USA

Date :01/02/2008 11:01:23

In a bid to challenge Google’s domination of the online world, Microsoft have made an unsolicited offer for Yahoo consisting of $44.6 billion in cash and stock.

Yahoo, headed by Jerry Yang, (pictured) responded in a news release today by saying that its board would evaluate Microsoft bid “carefully and promptly in the context of Yahoo’s strategic plans.”

"We have great respect for Yahoo, and together we can offer an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market," said Steven A. Ballmer, Microsoft’s chief executive, in a statement.

Advancement

"We believe our combination will deliver superior value to our respective shareholders and better choice and innovation to our customers and industry partners."

Microsoft went on to say that the transaction may cut costs by $1 billion annually for the combined company, based in Sunnyvale, California.

The offer of $31, contained in a letter to Yahoo's board, is 62 percent above Yahoo's closing share price $19.18 yesterday.

February 1, 2008