AFI BLOG: Media and Technology

Microsoft Offers to Buy Yahoo for $44.6 Billion - Bloomberg.com

Microsoft Corp., the world’s biggest software maker, made an unsolicited $44.6 billion offer for Yahoo! Inc. to challenge Google Inc.’s dominance in Internet search services and advertising.

The $31-a-share bid of cash or Microsoft stock is 62 percent more than Yahoo’s closing price yesterday. Before today, Yahoo had dropped 18 percent this year in Nasdaq Stock Market trading, and said this week that fourth-quarter profit fell 23 percent.

Microsoft Chief Executive Officer Steve Ballmer is attempting the biggest-ever technology takeover after failing to compete with Google in a market that may almost double to $80 billion by 2010. Microsoft’s shares have dropped about 40 percent since Ballmer took over from co-founder Bill Gates in 2000.

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Here’s a great collection of links from SearchEngineLand about the merger news:
Microsoft + Yahoo: Recapping Reactions