Microsoft Offers $44.6 Billion for the Ailing Yahoo

In one of those things that make you say “HOLY CRAP!”, Microsoft has offered to buy the ailing Yahoo! for $44.6 billion.

BBC: “The offer, contained in a letter to Yahoo’s board, is 62% above Yahoo’s closing share price on Thursday.

Yahoo cut its revenue forecasts earlier this week and said it would have to spend an additional $300m this year trying to revive the company.

It has been struggling in recent years to compete with Google, which has also been a competitor to Microsoft.

“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,” Microsoft chief executive Steve Ballmer said.

Its chief executive, Jerry Yang, announced on Tuesday that he intended to lay off 1,000 staff as part of a restructuring plan.

Terry Semel, who stepped down as chief executive last June, also quit as non-executive chairman on Thursday. “

I’m not sure if this will help or not but as a person who uses a lot of Yahoo! services I’m a bit concerned. Is this the fatal bullet to the head for Flickr?