“Microsoft to Pay $31 Per Share for Yahoo, Totaling $44.6 Billion in Cash and Stock. Microsoft said it sees at least $1 billion cost savings generated by the merger, and intends to offer significant retention packages to Yahoo engineers, key leaders and employees. The software giant said it believes the takeover would receive regulatory clearance and close in the second half of 2008.”
(via Yahoo Finance)
Update: just listened to the conference call. Clearly, vertical search and social media is high on the Microsoft priorities and buying Yahoo! gives them precious assets there. From a local search perspective, mobile was mentioned many times.
What it means: that rumor had been circulating for a long while now. This has the potential to create a powerhouse in local and social. More details during the conference call.