I just read over on Bloomberg that Microsoft has made an unsolicited bid for Yahoo. This is clearly in an attempt to compete with Google in Internet Search, something Microsoft hasn’t been able to do well yet. The offer is for $44.6 billion in cash and Microsoft stock. This is, according to Bloomberg, 62% more than Yahoo’s closing price yesterday. Quite a good deal for Yahoo shareholders who have probably been waiting years to make some money on their investment. Neither Yahoo or Microsoft has been able to get up to the level Google is at with search, though both have tried admirably.

My take is, this probably makes sense for Yahoo and to a degree Microsoft. I’m not sure about the heafty price tag though. Yahoo was already starting to cut jobs, so its probably a smart move. Only time will tell if Microsoft will be able to successfully meld the Yahoo culture into its own and share technology successfully. This will be the biggest technology merger ever and they don’t always work. Should be interesting.