Microsoft publicly bid $44.6 billion cash-and-stock to acquire Yahoo!. In its response, Yahoo! called the Microsoft bid "unsolicited" but did not reject it.
Microsoft's offer, which was contained in the letter to Yahoo's board, amounts to $31 a share and represents a 62 percent premium over Yahoo!'s closing price on Thursday. Microsoft said it will offer shareholders the option of cash or stock.
"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 in a statement.
Yahoo! said in a responding statement that its board "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."
The deal comes as both tech giants struggled to compete against Google. However, Microsoft didn't mention Google by name in its announcement, but it did indicate that its acquisition bid was aimed for it (Google).