Microsoft offers to acquire Yahoo! for $44.6 billion dollars.

In a move that completely has the tech industry shaken up, Microsoft has put out a statement saying they have Proposes Acquisition of Yahoo! for $31 per Share – which of course equates to $44.6 billion dollars. Yes, that this number -> $44,600,000,000… wow.

The bid for tech giant Yahoo is a mix of cash and stock, and would clearly be a giant blow to search leader Google. The release states that online advertising is a big plus to the acquisition, in a niche where the two companies have struggled to compete with Google’s AdSense / Adwords.

Microsoft’s Chief Executive Officer, Steve Ballmer sent the following letter to the Yahoo! Board of Directors yesterday. More analysis to come on Gadgetell.