Consisting of both cash and stock, Microsoft's bid values Yahoo shares at $31 a share, a 62% premium on yesterday's closing price.
Yahoo! is Sirius' music partner for the Stiletto, but beyond that this also would consolidate two big players in Internet Radio. Yahoo runs the popular LAUNCHcast service, and Microsoft has MSN Radio (which is powered by Pandora).
Microsoft's main motivator behind this is search engine competition and advertising mojo, stating that the "resulting benefits of scale along with the associated capital costs for advertising platform providers make this a time of industry consolidation and convergence. Today this market is increasingly dominated by one player. Together, Microsoft and Yahoo! can offer a competitive choice while better fulfilling the needs of customers and partners."
I wonder if their merger will take as long as Sirius-XM? Something tells me it won't.