The Redmond giant, Microsoft could very well become much bigger and enhance its Internet presence if Yahoo accepts US$44.6 billion bid to be purchased. A premium of 62 percent has been offered to Yahoo! shareholders by 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 CEO Steve Ballmer said in a statement.

This is not the first time Microsoft has offered to buy Yahoo!. In late 2006 as well as in early 2007 a letter was sent to Yahoo! But the proposal was rejected back then. There have been no comments from Yahoo! as yet.

More coverage at Webpronews and Bloomberg.

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