Microsoft looking to bid for Yahoo also?

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Yahoo’s Carol Bartz and Steve Ballmer in happier times

There is talks of AOL and Yahoo looking for a merger, but now Microsoft is also rumoured to be sniffing around the ailing Yahoo.

"Definitely, people are talking about it," a MSN source told Business Insider.

While we usually think in terms of Bing and Yahoo, which makes the deal less attractive as Microsoft has a 10 year search deal with the company, it is Microsoft’s MSN destination which could benefit the most from an outright purchase.

The source told Business Insider Microsoft was not interested in AOL, noting "Yahoo is a lot more interesting. If it comes into play, then at least their U.S. media business is a pretty interesting asset. It’s complicated because of those Asian assets."

"The portal space is challenged. Facebook is just absorbing more and more minutes – usage. That’s having an effect on portals. The time shifting toward mobile is another factor weighing on portals. The problems AOL and Yahoo have are exacerbated by management."

Microsoft’s MSN site has been a steady money loser, but according to the source there has been a realization from management that "MSN is a critical component of helping Bing win."

A Yahoo insider has recently claimed “Yahoo is open to selling itself to the right bidder” according to TNW.

Microsoft famously attempted to purchase Yahoo for $ 44.6 billion in 2008.  The company is currently trading for close to a third of the value to a market cap of $16 billion.

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  • Anonymous

    money spent on this is money wasted.  If Microsoft really wants to buy them, they should wait several more months so that they lose even more market value.  $15 billion spent on this is not worth it at the moment.

  • Anonymous

    Microsoft should trade MSN for Yahoo search.

    Microsoft should be a content provider, not a content creator.

  • Anonymous

    I know nothing!..But, consider this, I’ve had an account [mail] with Yahoo since 99-2000 and i’ve never thought of them as anything other than a cloud mail service and the initial forums (of which their use died about 2003). Search, not used after Google came online!
    If in all that time (10+ years) they haven’t been able to innovate to attract more of my attention then they are doing something wrong!

  • David

    Buying Yahoo! is the biggest mistake. Yahoo! adds nothing to Microsoft.

    They have nothing special or valuable that Microsoft doesn’t have already or can’t build it itself.

    This is just waste of money. there sia reason they are this low now. Spend that money for even more innovation or buy valuable stuff.

    Spend that money to build new services for example something like YouTube. You have money and resources so why not.

    Please don’t do it (buying Yahho!).