This just in: Microsoft makes bid for Yahoo!

From my Wall Street Journal tech alert emails:

"Microsoft Corp. offered $44.6 billion to buy Yahoo Inc., in a bold attempt to dramatically expand its online business and compete more effectively with Google Inc. in services ranging from email to Internet advertising sales.

The offer was made in a letter sent Thursday by Microsoft Chief Executive Steve Ballmer to Yahoo's board of directors. One person familiar with the matter said that Microsoft decided to "go hostile" with its bid within the last few weeks after Yahoo ignored its latest overtures.

The offer, $31 a share in cash and stock, is a 62% premium to Thursday's closing price. ..."

Makes a lot of sense, actually. Yahoo!, clearly vulnerable. Microsoft, a player in the online ad game, but not nearly as much of a player as it would like to be. Yahoo, much stronger in search. Microsoft, much stronger in wealth. We shall see.