Microsoft + Yahoo = $$$$ + ????

After a few years full of steady growth and growing public dissent, Microsoft has attempted a power move in bidding $44 billion to purchase Yahoo. BBC reports:

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

This is obviously an attempt to inject some momentum into their company and compete for a large part of Google's market share. I consulted a few business friends, who believed the buying price for Yahoo was extremely exorbitant, and the opporunity didn't appear to be a good buy for Microsoft. Microsoft was unsuccessful in a bid to buy Yahoo last year, and Bill Gates surely wants to leave his company with one final gem.

Though I am not the world's largest Microsoft fan, I believe credit is still due, as the company has been key in development and expansion of the computer, despite their anti-trust problems and buggy operating systems. This deal would be a positive thing for the market, being that Google seems to be holding a monopolistic position, and their hold is only growing stronger. They need a competitor to keep them in check and to add balance. The only company with enough resources to viably compete is Microsoft, so for the sake of competition and keeping each other honest, I see this move as a necessary. Still, it is interesting to note that with all their anti-trust problems through takeovers, this acquisition effectively creates competition rather than eliminating it. The outcome could determine whether Microsoft remains a force in the internet sector for years to come.

also see MSN money

(Annotation 2/4:)
Google is against this takeover(of course) complaining about the open-source ideology being disregarded, and the danger of a "software monopoly.":

Microsoft plus Yahoo! equals an overwhelming share of instant messaging and web email accounts

Google has good reason not to trust Microsoft or their intentions, though it would be remiss to forget that no-one would be supportive of possibly losing a large market share in such a burgeoning area. Google has some strong points about the case, but they are also playing the role of the victim, possibly overacting a touch. Ken Fisher also sees through Google's feigned innocence as an attempt to polarize the issue in their favor:

Is this a reasonable response, or fear mongering? It strikes me as more of the latter, to be honest.

Well said, Ken.