UPDATED: Microsoft Makes Formal $44.6bn Bid For Yahoo

All the rumours were true... - Update: Yahoo responds.

Fresh off the back of record Q2 results, a confident Microsoft has revealed it has made a proposal to Yahoo to acquire all its outstanding shares in a deal worth a staggering $44.6bn.

“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,” said Steve Ballmer, Microsoft CEO. “We believe our combination will deliver superior value to our respective shareholders and better choice and innovation to our customers and industry partners.”

Four key areas of benefit have been targeted by Microsoft through the purchase:

*Scale Economics driven by audience critical mass and increased value for advertisers

*Combined engineering talent to accelerate innovation

*Operational efficiencies through elimination of redundant cost

*Ability to innovate in emerging user experiences such as video and mobile

Microsoft says it believes these four areas will generate at least $1 billion in ‘annual synergy’ for the combined entity.

Interestingly, there has been no comment from Yahoo itself in all this and the company has been undergoing radical restructure in an attempt to ward off just such an approach. Furthermore, the proposed value – a whopping 62 per cent premium above the closing price for Yahoo common stock yesterday – shows the desperate stance Microsoft has adopted in its attempts to catch up with Google in the online market space.

Putting this into some context, it comes just six months after Microsoft broke its purchase record in August to buy online advertising firm aQuantive for $6bn and four months after it (over)paid Facebook $240m for a tiny 1.6 per cent stake in an attempt to get a foothold in the social networking arena.

How will Yahoo respond? Can it afford to say no? I’ll keep you posted…

”’Update:”’ Yahoo has spoken out in a short, non-committal statement:

”Yahoo! Inc. (Nasdaq:YHOO), a leading global Internet company, today said that it has received an unsolicited proposal from Microsoft to acquire the Company. The Company said that its Board of Directors will evaluate this proposal carefully and promptly in the context of Yahoo!’s strategic plans and pursue the best course of action to maximize long-term value for shareholders.”

You’d think with a 62 per cent premium being waved at them, those shareholders are thinking: SELL, SELL, SELL!

Find the release here.

Press Release & a copy of the letter sent by Microsoft to Yahoo’s Board of Directors

More from TrustedReviews

LG Q8 finally brings the V20’s promise to Europe

Atari is now in the speaker business… and the hat business

Thinner Moto Z2 Force could come with a huge trade-off

HyperLoop One

Elon Musk’s Hyperloop gathering pace as NY-DC link gets ‘OK’


Is this proof an N64 Classic will follow the SNES?

Agents of Mayhem preview

cats 17

Why you’ll want to download this OnePlus 5 update today

Golf rory

British Open Golf Live Stream: How to watch online for free

Call of Duty: Infinite Warfare for Xbox One down to under £9

Samsung Gear S3 finally gets Samsung Pay support in UK

Welcome to the all new Trusted Reviews

Netgear Arlo

Netgear Arlo Pro

Cat Amazon

Are you kitten me? Pet translation devices tipped for future smart homes

fire emblem warriors

Fire Emblem Warriors


Pokkén Tournament DX

TP-Link Smart Wi-Fi LED Bulb 5

TP-Link Smart Wi-Fi LED Bulb

Samsung Pay

Samsung Pay now lets you use your PayPal funds at the checkout

assassins creed origins

Ubisoft teases new games for Nintendo Switch, coming ‘quite soon’

amazon echo

Ask Vodafone: Mobile network’s first Amazon Alexa voice skill is revealed

Google Feed

The Google app’s new personalised feed might just drag you off Facebook

z2play 9

Moto Z2 Play

Mira Prism

For just $99 you can bring AR to the iPhone 7

Samsung Galaxy S8

Samsung Galaxy S9 displays may be the same, save one major new feature

movie theatre

The Netflix Effect: ‘Binge-watching’ is coming to movie theatres

Porsche MIssion E

Porsche’s latest electric car chargers put Tesla to shame

EE logo

EE’s new 20GB SIM-free deal is the best value tariff you’ll see all summer


These are the first images from the ISS – as captured by a zero-gravity drone

iMac 21.5-inch 4K (2017)

LG V30 case

LG V30 design ‘confirmed’ ahead of IFA 2017 launch

iPhone 7 vs iPhone SE

Waiting for the iPhone SE 2? Sadly, it could be a one-and-done

Google Glass Enterprise

Google Glass 2 has arrived, sort of

Denon AH-C621R

Denon AH-C621R

BBC Proms

Get ready to listen to the BBC Proms like never before

Fender Newport Monterey Bluetooth speakers

Fender’s new Bluetooth speakers look just like tiny guitar amps

Garmin Vivosmart 3

Garmin Vivosmart 3


Is the laptop travel ban dead? Electronics restrictions lifted by TSA but UK fails to follow suit

KitSound Immerse

KitSound Immerse Wireless Headphones


It’s World Emoji Day and Apple is showing off all of its newcomers

Porn Block

Privacy fears as UK plans age verification for porn sites


New WhatsApp feature could give Apple’s iMessage a run for its money