We have been hearing this for a long time now. But this time there has been a formal confirmation from Microsoft, that it has made an offer to the Yahoo Board of Directors. According to the offer Microsoft will buyout all remaining shares of Yahoo @ $31 with the total deal valued at around $44.6 billion (also valued at $42 bln by others). If this goes through, it will be the biggest takeover ever in the Tech Sector. Wonder if Google bothers to look behind and see whts happening?

“The combined assets and strong services focus of these two companies will enable us to achieve scale economics while reaching R&D critical mass to deliver innovation breakthroughs,” said Kevin Johnson, president of the Platforms & Services Division of Microsoft. “The industry will be well served by having more than one strong player, offering more value and real choice to advertisers, publishers and consumers.”

Microsoft estimates that the combined entity will save at least $1 billion in costs. Microsoft has developed a plan and process that will include the employees of both companies to focus on the integration of the combined business. Microsoft intends to offer significant retention packages to Yahoo! engineers, key leaders and employees across all disciplines.

The Press Release by Microsoft also states that ‘this proposed combination would receive all necessary regulatory approvals and expects that the proposed transaction would be completed in the second half of calendar year 2008.’

Update:
Although Google’s lead in the Internet space is much more than Microsoft and Yahoo combined, Google makes its opinion public on its blog.

Read here

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Update: Although things are calm now, we certainly know that Microsoft is interested in Yahoo. These rumors were out in the market time and again since a couple of days and finally now we have something officially!