Microsoft offers to buy Yahoo for $44.6 bln in cash, stock
By Aude Lagorce
MSFT 32.60, +0.40, +1.2%) on Friday offered to buy Yahoo, Inc. (YHOO:Yahoo! Inc
YHOO 19.18, +0.13, +0.7%) for $44.6 billion, or $31 a share, in a mix of cash and stock. The offer represents a 62% premium on the closing price of Yahoo on Thursday. The software giant said the deal would create a "more efficient" company with total annual synergies of $1 billion, driven by audience critical mass, increased value for advertisers and operational efficiencies. Microsoft said it's already developed a plan to involve both companies' employees in the integration and would offer significant retention packages to Yahoo engineers and key leaders. Microsoft said it expects the deal to regulatory approval and to be completed in the second half of 2008.