Red Flayer writes "It appears that Microsoft has rediscovered that the best way to do something is to find a company that already does that thing, and buy that company. Despite Microsoft's insistence that their search function is great, CNN Money is reporting that Microsoft has made a bid for Yahoo in the amount of US$46 Billion. This offer represents a premium of about 60% over what Yahoo shares were worth Thursday, and comes on the heels of the announcement that Yahoo will be laying off a thousand employees in the next month due to "headwinds" Yahoo will be facing in the coming year. Interestingly, though Yahoo futures shot up prior to the market opening Friday morning, Microsoft futures took a slight tumble (about 5%). So is Microsoft just looking to narrow the field of competitors, do they see real value in Yahoo's IP and/or client base, or both?"