In a surprise move, Microsoft, the world's largest software maker, has bid Yahoo, the slumping second most popular internet search engine, for $44.6bn in cash and shares on Friday. According to the letter of Microsoft CEO Steve Baller to Yahoo's Chairman Roy Bostock and CEO Jerry Yang the offer represents a 62 percent premium above the closing price of Yahoo! common stock on Jan. 31, 2008. Apparently, the boldest bid ever by Microsoft is to challenge Google's dominance of the lucrative online search and advertising markets. If Yahoo agrees to Microsoft's proposal, the takeover would possibly take place after regulatory clearance and close in the second half of 2008.
