In a bold move to counter Google’s online pre-eminence, Microsoft said Friday that it had made an unsolicited offer to buy Yahoo for about $44.6 billion in a mix of cash and stock.
If consummated, the deal would redraw the competitive landscape in Internet consumer services, where Microsoft and Yahoo have struggled to compete with Google.
The offer of $31 a share represents a 62 percent premium over Yahoo’s closing stock price of $19.18 on Thursday. It would be Microsoft’s largest acquisition ever.
Microsoft said the combination of the two companies would create efficiencies that would save approximately $1 billion annually. The software giant also said it had an integration plan to include employees of both companies and intends to offer incentives to retain Yahoo employees.
Yahoo said in a news release Friday that its board would evaluate Microsoft’s bid “carefully and promptly in the context of Yahoo’s strategic plans.”
