Microsoft offers 62% premium above the closing price of Yahoo!
Microsoft has announced today that it has made a proposal to Yahoo's board of directors to purchase all outstanding shares of Yahoo! for $31 per share, a 62% premium above Yahoo's closing price on January 31st.
The offer represents a total equity value of $44.6 billion and would allow Yahoo! shareholders a choice of receiving cash or a fixed number of shares in Microsoft common stock.
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."
"We believe our combination will deliver superior value to our respective shareholders and better choice and innovation to our customers and industry partners."
Microsoft states it has plans in place to integrate employees of both companies and intends to offer significant retention packages to Yahoo! workers. The Redmond-based software giant expects the proposed transaction to be completed in the second half of 2008.
HEXUS.channel has further analysis of this story.
Official press release: Microsoft Proposes Acquisition of Yahoo! for $31 per Share
