Microsoft launches £24.2bn Yahoo! bid

Software giant Microsoft has launched a £24.2 billion bid to acquire web company Yahoo! in one of the biggest internet takeovers to date.Microsoft said the cash and stock offer to buy Yahoo! for £15.50 per share represents a 62 per cent premium above the company's closing stock price on Nasdaq on Thursday.Microsoft chief executive Steve Ballmer 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."Microsoft said it had identified four areas that would generate at least £503 million in annual synergies for the combined entity.Yahoo! has said the online advertising market is growing rapidly and is expected to reach nearly £40.3 billion by 2010 from over £20.1 billion in 2007.It added it is "increasingly dominated by one player," referring to search engine leader Google.© Independent Television News Limited 2008. All rights reserved.

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ITN | February 1, 2008