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.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.
The announcement comes with Microsoft and Yahoo seeking to compete with Google in the lucrative online advertising market, currently worth $40 billion and expected to grow to $80 billion within three years.
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