Tuesday, February 05, 2008

Yahoo for Sale !!

Microsoft Proposes Acquisition of Yahoo! for $31 per Share. Transaction valued at approximately $44.6 billion in cash and stock; provides 62 percent premium to current trading price for Yahoo! shareholders; combined entity to create a more competitive company, providing superior value to shareholders, better choice and innovation for customers and partners.
Microsoft’s proposal would allow the Yahoo! shareholders to elect to receive cash or a fixed number of shares of Microsoft common stock, with the total consideration payable to Yahoo! shareholders consisting of one-half cash and one-half Microsoft common stock.
Microsoft will probably borrow money for the first time to finance its proposed $44.6 billion takeover of Yahoo, chief financial officer Chris Liddell said.
Microsoft took on $80 million in debt from AQuantive when it bought the Internet advertising company for $6 billion in August. Both the AQuantive acquisition and the proposed take-over of Sunnyvale, California-based Yahoo are part of Microsoft’s effort to compete with Google in the $40 billion-a-year market for Internet search services and advertising.
Know more about the deal.

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