From MSNBC:

DERA ISMAIL KHAN, Pakistan – Pakistan’s Taliban chief, who has led a violent campaign of suicide attacks and assassinations, has been killed in a U.S. missile strike, Taliban commanders and Pakistani intelligence officials said Friday.
But one Pakistani official said no intelligence agent had actually seen Baitullah Mehsud’s body. A senior U.S. intelligence official also said there were strong indications that Mehsud was among those killed in Wednesday’s missile attack, but he would not elaborate.
Details remained sketchy — Britain’s Sky News reported that Taliban sources claimed Mehsud was alive but injured — but if confirmed, Mehsud’s demise would be a major boost to Pakistani and U.S. efforts to eradicate the Taliban and al-Qaida.