Feeds

Microsoft! touted! to! buy! Yahoo!

Redmond may be ready to pick over the carcass

Top three mobile application threats

Microsoft is mulling the purchase of Yahoo! according to published reports that pushed up the share price of the declining portal site by about ten per cent in Wednesday's trading.

Reuters quotes a high-ranking Redmond executive as saying that the company is considering a bid for Yahoo!, possibly in association with another partner company, but that the deal is causing strong disagreement internally. Those keen on a deal are claiming the move would effectively knock AOL out of the industry, but others feel that it is better to invest in a company with growth potential, not with its best years seemingly behind it.

“Yahoo's value hasn't grown in years, and some executives feel we should buy something that is more forward-looking," said the executive, who spoke on condition of anonymity.

Microsoft has long had an interest in Yahoo!, with erstwhile CEO Jerry yang reportedly turning down a bid from his counterpart Steve Ballmer of more than $40bn a few years ago. That's more than double its current value. That decision was a factor in Yang’s resignation from the top job, when he was replaced with the recently-fired Carol Bartz.

Microsoft is not the only potential suitor however. Several private equity firms have been suggested as possible buyers and the company has reported receiving statements of interest from others, with Chinese portal Alibaba also mulling a bid.

If Redmond did take over Yahoo, the deal could provide a boost for the Bing search business, potentially giving Microsoft around 30 per cent of the search market. This could however attract the interest of the regulators, and it seems possible Microsoft would have to sell off part of the company to satisfy competitive concerns. ®

The Essential Guide to IT Transformation

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Nadella: Apps must run on ALL WINDOWS – on PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
HP and Microsoft prove it again: Big Business Doesn't Create Jobs
SMEs get lip service - what they need is dinner at the Club
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.