Report: Microsoft considering making an offer for Yahoo

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imageIf may caused flashbacks to 2008, but it seems Microsoft is once again considering buying Yahoo.

Reuters report that “sources close to the situation” say on this occasion Microsoft may not go it alone, but attempt a purchase in partnership with another company, as has been their pattern recently.

According to Reuters other bidders include Providence Equity Partners, Hellman & Friedman and Silver Lake Partners, as well as Chinese e-commerce giant Alibaba and Russian technology investment firm DST Global.

The deal has internal opposition in Microsoft, where some are unsure the deal is worth pursuing, according to “a high-ranking Microsoft executive”.

Yahoo’s share price has rallied on the rumour, being up more that 7% versus the open this morning, giving the company a market cap of nearly $20 billion. The company hit a low of $14 billion as recently as the beginning of August 2011, and has since then fired their CEO and is rumoured to be setting themselves up for sale.

Via Reuters.com

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  • Anonymous

    ballmer is a genius. instead of buying yahoo in 08 at 47/share, he got the search partnership which he wanted, then let the stock price drop after a couple years until he can buy it at discount instead of nearly $50 a share. this and the facebook investment make ballmers strategic investments look like good picks.

  • Anonymous

    Buying Yahoo would be an incredible waste of money. They already have Bing, and it’s slowly but steadily gaining market share.

    • rsgx

      What about all the Yahoo! mail users?

      • Anonymous

        The Yahoo! portal still brings a lot of people to their news, finance, sports, etc pages. Not to mention they are still doing well in other countries (as a portal, not necessarily search).  It all depends what they plan to do with them if they were to buy.

    • bryan

      in my opinion , this is not search microsoft is interested in , it’s all the services around like flickr for example

  • Anonymous

    they are not worth $20 billion.  I would offer $15 billion, take it or leave it.  In two years they will be worth less anyways.