Microsoft bids $44.6B for Yahoo

Software giant Microsoft said Friday it had made an unsolicited offer to buy Internet search engine operator Yahoo with a cash and stock bid worth $44.6 billion.

The $31-a-share offer represents a 62 percent premium for shareholders above the closing price of Yahoo stock on Thursday, Microsoft said in a statement.

Microsoft CEO Steve Ballmer said the move marked the "next major milestone for the Washington-based company.

The offer allows Yahoo shareholders to elect to receive cash or a fixed number of shares of Microsoft common stock with the total purchase consisting of half cash and half stock.

Yahoo shares rose nearly 60 percent in pre-market trading on news of the approach, while Microsoft shares were down 2.6 percent, CNN Money reported.

http://edition.cnn.com/2008/BUSINESS/02/01/microsoft.yahoo/index.html