Microsoft offers to buy Yahoo for USD 44.6 billion

Technology giant Microsoft Corp said on Friday that it had offered to acquire Internet media company Yahoo Inc for USD 44.6 billion in cash and stock.Microsoft said it had offered to buy Yahoo for USD 31 per share, which it said represented a 62 per cent premium above the company's closing stock price on Nasdaq on Thursday.

"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," Microsoft Chief Executive Steve Ballmer said in a statement.

Yahoo was not immediately available for comment. Microsoft said it had identified four areas that would generate at least USD 1 billion in annual synergies for the combined entity.Yahoo shares rose 56 per cent to $29.95 in pre-market trading on Friday following the announcement. US stock index futures also jumped after the news was released.

Yahoo! buys minor stake in PR firm

Yahoo! Inc has acquired 35% stake in Gurgaon-based Tyroo Media, an advertising and public relations company, for an undisclosed amount.

The move comes as part of Yahoo's strategy to invest aggresively in technology and sales networks through small and medium-sized advertisers and publishers in India.

George Zacharias, managing director, Yahoo! India said: "Through this investment, Yahoo! will act as a catalyst for the entire ad-network industry, which is still in a nascent stage, in India." The investment gives Yahoo Inc a representation on the Tyroo board.

Microsoft eyes Yahoo! buyout

Microsoft is in early stage talks with Yahoo! for a possible takeover, in a move that would allow the software giant to compete better with Google for online advertising, according to people familiar with the matter.

Microsoft is working with Goldman Sachs on a possible deal, the newspaper said, citing an unnamed banking source. Yahoo! is considered an obvious target for Microsoft, as a takeover would massively cut Google’s lead in internet search.

In India, Microsoft and Yahoo! have been collaborating in areas like instant messaging (IMs). Microsoft, with an estimated turnover of over Rs 3,000 crore and around 4,000 employees, recently gave its wholly-owned Indian subsidiary the status of an independent “strategic business hub”.

Read more in The Business Standard article.