Speaking of Yahoo!, according to the New York Post, Microsoft is considering acquiring Yahoo! in what could be a $50 billion deal. Well that certainly would mix things up a bit. Wall Street likes the idea, Yahoo! stock (YHOO) is up over 18%.
Of course the goal here is that the combined strength of Microsoft and Yahoo! would then allow them to take on Google head-to-head. The story has hit the AP wire.
The Wall Street Journal said executives of the two companies are looking at a merger or some other kind of matchup and said the talks appear to be early-stage discussions. It said the companies explored the idea of combining last year but the talks led nowhere.
The Post story said Microsoft and Yahoo have held informal talks over the years and said Microsoft’s latest approach to Yahoo signals increased urgency.
Interesting, The Wall Street Journal is reporting the news as merger talks between the two companies, instead of an outright purchase by Microsoft. Let’s see how their respective PR machines end up spinning all of this.
More coverage from: Om Malik, Erick Schonfeld, Engadget, Mashable, Robert Scoble & Jesse D. Lewin (Channel 10)
UPDATE: According to Ryan Block, there is no deal currently in the works.
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{ 5 comments… read them below or add one }
Does anyone else find it humorous that Microsoft will need Yahoo to rival Google? That makes Google worth two companies.
I don’t think that Microsoft needs Yahoo to compete. Despite all of google’s advancement, they still rely almost solely on AdWords for revenue. It’s only a matter of time before somebody beats them at their own game. At best, the merger between Yahoo and Microsoft only speeds up the process by a few years.
I think its only a matter of time before Microsoft turns into IBM, where they are so big, and so scattered that they don’t know how to turn a profit… but as long as they keep up with their shady business tactics, their lawsuits, copyrights, and overall Evil Empire intentions… I will still be worried.
Actually, the competition is on advertisement. Microsoft is behind on this, the rest of stuff Google is ot advanced.
Google is good at innovating, Microsoft is good at following as before.
Buying Yahoo, sounds a good idea, depending how much Yahoo can accept.
Microsoft is considering acquiring Yahoo! in what could be a $50 billion deal.
Well, search engine will be dominated by Microsoft and Google. Who have more innovative ideas will win. Microsoft is good at following and take over.
Apart from USA market, China is 2nd largest market in the world. China will be replacing USA as the largest internet market in 2010 by having 200 Million on the line.
Why buy Yahoo, can consider to buy Baidu, which is the largest search engine in China, taking 53% of market share. Li KaiFu, its CEO mentioned in near future, there will be no place for overseas company.