If Microsoft has its way, Google may soon have a formidable competitor on its heels. A blog post on NYTimes.com's DealBook discusses Microsoft's $44.6 billion bid for Yahoo!, which was announced this morning. The proposed acquisition would be the largest ever by Microsoft. In a letter to Yahoo!'s board, Microsoft's chief executive, Steven A. Ballmer, presented his pitch for the acquisition. "This proposal represents a compelling value realization event for your shareholders," he said. According to the letter, Microsoft and Yahoo! held talks early last year discussing collaborative efforts and a possible merger. But, at the time, Yahoo! turned down any takeover proposals.

As for potential problems with the acquisition, the DealBook blog points out that antitrust concerns, especially from the European Union, could get in the way. In addition, Microsoft and Yahoo! have very diverse corporate cultures, with Yahoo! described as having a "freewheeling ethos" while Microsoft is known for a more "restrained culture."