Microsoft has offered to buy Yahoo! for $44.6bn (£22.41bn) in an apparent bid
to strengthen its hand against Google for the growing online advertising market.
The cash and shares offer prices Yahoo! 62 per cent above its common-stock
price at the time of the bid. Yahoo! prices subsequently soared following the
news.
Steve Ballmer, chief executive officer of Microsoft, said: “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."
Ray Ozzie, chief software architect at Microsoft, said: “Yahoo! has played a
pioneering role by building compelling, high-scale services and infrastructure.
"The combination of these two great teams would enable us to jointly deliver
a broad range of new experiences to our customers that neither of us would have
achieved on our own.”
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