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MUMBAI/BANGALORE: Microsoft, the world’s biggest software maker, made an unsolicited $44.6-billion offer for Yahoo to challenge Google’s dominance in internet search services and advertising.

A big present in a marriage between the two companies will be India. Both companies have strong development and support presence in the country and have adopted aggressive strategies in the fast-growing and youthful market for internet content and services. The $31-a-share bid of cash or Microsoft stock is 62% more than Yahoo’s closing price on Thursday.

Microsoft CEO Steve Ballmer is attempting the biggest-ever technology takeover after failing to compete with Google in a market that may almost double to $80 billion by 2010. Google has grown faster than Microsoft in every quarter since Google’s 2004 initial public offering as its search engine won more users.

“Microsoft is under massive pressure to expand its internet business to fend off competition from rivals such as Google and this deal shows how desperate they are,” said Thomas Radinger, a fund manager at Pioneer Investments in Munich, which oversees about $95 billion, including Microsoft shares.

“It’s a huge gamble as the price is very steep and it will take years to successfully integrate such a massive acquisition.” Yahoo said on Friday that it plans to evaluate the proposal “promptly”.