Well now if this isn't a breaking story now what is?  Having been part of the Internet community and working online now for over 12 years myself.  It's amazing to see the #1 web site on the Internet getting an offer to be bought out like this.

But as usual for Microsoft, if they can't get to be #1 in a market lets buy ourselves that position. So with the look of Yahoo being in trouble with them laying off people over the last week.  Microsoft has taken it upon themselves to try and buy them out.  Microsoft has placed a bid of $31 per share which is a 62% increase on the closing price Thursday of $19.18/share.  This purchase would be done through stock and cash.  As more news comes available I will update this blog post.

Update - 8:11 atl

This announcement came today unexpectedly and was a follow up of to a letter that Microsoft received from Yahoo last February. And is a direct attempt by Microsoft to position themselves better in their fight for dominance in the Search and Online advertising areas against competitor Google.

Under the terms of the proposed deal, Yahoo shareholders would have the option of receiving cash or Microsoft common shares as compensation for their shares with the total purchase being a 50/50 split between cash and stock.

Microsoft intends to offer significant compensation packages to maintain Yahoo engineers, key leaders and employees. It believes the the takeover could receive approval and close in the second half of 2008.