The year of speculation is over.
Microsoft (NASDAQ: MSFT) announces bid for Yahoo (NASDAQ: YHOO).
Microsoft confirmed a short while ago that it is making a bid to buy Yahoo.
The current offer is at $31 per share, or an estimated 44.6 billion dollars (US) in cash and stock.
Earlier this week, Microsoft posted record profits in the midst of a looming recession in the US.
Yahoo has been having difficulties during the past year, and stories of significant layoffs have been circulating the net.
In Europe, tech shares firmed quickly as news of the bid spread through the various markets.
As we expect numerous (More than numerous?) websites to post this news and perspective on the story today, updates will be made to our shared Google Reader list (at right) as appropriate.
The markets, which have been more than shaky as of late, couldn't have asked for better news on a Friday. It remains to be seen how the proposal plays out in the NY markets which open in a few hours. Reaction from the Yahoo board could come quickly or take a few days.
UPDATE 1 : The pre-market trading, Microsoft was trading down approx 6 per cent. Yahoo shares are up over 50% reaching for the tender price in pre-market activity!
UPDATE 2 : Yahoo responds to Microsoft offer. The press release from Yahoo is here .
UPDATE 3 (edit) : Microsoft CEO Steve Ballmer's memo this morning to Microsoft employees has been posted by SeattlePI.com here .