This is certain to be a big deal:
NEW YORK (CNNMoney.com) — Microsoft made an unsolicited $44.6 billion cash and stock bid for Yahoo Friday, a deal that could shake up the competitive and lucrative market for Internet search.
The deal would pay Yahoo shareholders $31 a share, which represents a 62% premium from where Yahoo stock closed on Thursday.
Microsoft’s statement said the offer allows Yahoo shareholders to elect to receive cash or a fixed number of shares of Microsoft common stock, with the software giant’s offer consisting of one-half cash and one-half Microsoft common stock.
Shares of Yahoo (YHOO, Fortune 500) shot up nearly 60% in pre-market trading on the news, while shares of Dow component Microsoft (MSFT, Fortune 500) tumbled 5%.
Both Microsoft and Yahoo have fallen far behind rival Google (GOOG, Fortune 500) in the lucrative field of Internet search. Yahoo’s earnings and share of the online search market have badly trailed Google.
Who said Microsoft was old news ?
