US software giant Microsoft on Friday made a 44.6-billion-dollar offer to buy internet company Yahoo, potentially the largest-ever technology takeover in a bid to rival its chief competition and search engine leader Google, according to DPA. The offer of 31 dollars per share for Yahoo represents a 62-per- cent premium on the internet company's Thursday closing price. Yahoo acknowledged receiving the unsolicited bid and said its board of directors would be considering it carefully. Microsoft, producer of the Windows computer operating system, and Yahoo have been unable to catch up with market leader Google and make inroads into the internet advertising business. Yahoo said Tuesday that it was cutting some 1,000 jobs amid a decline in profits in 2007. Yahoo shares were up nearly 50 per cent in morning trading on Wall Street Friday as news of the potential deal reached investors. Microsoft shares dropped more than 5 per cent. According to previous reports, Microsoft and Yahoo have been in talks about a possible cooperation and even merger for more than a year, but Yahoo has refused the proposal. The official offer by Microsoft will likely place more pressure on struggling Yahoo's board and shareholders. Yahoo in a statement said 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."
