Microsoft makes a $45B Bid for Yahoo (MSFT / YHOO)

Microsoft made a bid of $31 per share for Yahoo today, valuing the deal at almost $45B.  This represents a 62% increase from Yahoo's closing price yesterday.   This just after Terry Semel announced he would leave the board of directors, and Yahoo stock touches 4-year low.

Microsoft and Yahoo explored ways to work together in late 2006 and early 2007, but Yahoo rejected the idea of being taken over.

Yahoo's stock has been troubled since 2000, dropping more than 80% from it's high of 101.81.  Yahoo's most recent high was 33.36 in October of 2007.  At $31 per share, Microsoft's tender offer is clearly attempting to take advantage of Yahoo's recent tough times and the current stock market uncertainties.

Here are some links to some of the best coverage:

• Search Engine Land
• Business Week (Microsoft's Letter to Yahoo)