What do you do when you're losing ground to one of the hottest companies in the world? Buy their competition. At least, that's what Microsoft is planning to do.

In a shocking move Microsoft has offered a bid to buy Yahoo for $44.6bn. This is 62% above Yahoo's closing share price on Thursday.

It has been no secret that Yahoo has taken a huge hit since Google popped up in the search engine market. In a report earlier this week Yahoo announced they would have to cut their revenue forecast and said the company would have to spend $300m extra this year just to revive the company.

This, apparently, is where Microsoft wants to come in. Microsoft, who has tried to compete in the search market with their Live Search, has also been in an ongoing battle with Google. Google's Gmail and Google Docs, just to name a few, are both in direct competition with Microsoft's Hotmail and Microsoft Office.

If this deal goes through it could give the internet a new competition to watch. As powerful as Google has become, it will be interesting to see if they can compete with the combined power of Yahoo and Microsoft.

The words, "The enemy of my enemy is my friend," have never sounded truer.