Shock announcement: Microsoft has offered to by Yahoo for $44.6 Billion.

Initially when this story was creeping around the gossip columns, it looked like a nice piece of PR for Microsoft. It turns out that the story is true.

It will be very interesting to see how this plays out, both Yahoo and Microsoft search engines lag way behind Google in terms of market share . Yahoo is number two, to Google and Microsoft a poor third. Maybe combined theycan put up a better fight and more promising search engine.

Financial Times cover the news in depth, here, a copy of Steve Balmers (Microsoft’s CEO) letter to Yahoo is here.


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