Microsoft announce offer of $44.6 Billion for Yahoo: Is this a good idea?

Microsoft have just announced what was a rumor for a while a formal offer of $44.6 Billion for Yahoo, the proposal to Yahoo’s board of directors represents $31 per share which is a 62% premium over yesterday’s closing price or $44.6 Billion.

CEO Steve Ballmer said “We have great respect for Yahoo!, and together we can offer an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market.”

Well apparently this amazing deal was put out in a letter which was sent to Yahoo’s board by Ballmer, the letter did confirm that the two major companies have indeed been discussing the topic since late 2006 and it also appears to be a direct response to the Google threat which was outlined in the following paragraph.

The question here is “Do you think it is a good idea Microsoft buying Yahoo?

Source – Microsoft Press Release