Feeds

Yahoo! Microsoft! merger! back! on! after! NDA! signed!

Yang’s final humiliation as Redmond offers peanuts

The essential guide to IT transformation

A merger between Microsoft and Yahoo! could be back on the cards, after Redmond reportedly signed a non-disclosure agreement as a prelude to serious talks about their future together.

A source close to the deal told the New York Times that Microsoft had signed the pledge, including provisions not to discuss terms with third parties, as part of negotiations to see if it could buy some, or all, of the fading internet legend. Redmond has been holding talks with potential partners before signing the NDA, but now seems ready to make its move.

Yahoo! has been openly touting itself on the market ever since the rather inept firing of Carol Bartz, and the naming of several suitors, including the Alibaba Group, private investment funds like Silver Lake, KKR and TPG Capital, or even Google.

Microsoft’s name has also been mentioned, but there’s history. Three years ago the company offered Yahoo $33 a share for the business, valuing the company at $47.5bn, an offer co-founder Jerry Yang turned down. Yahoo!’s current share price is less than half that and investors are calling for his scalp.

According to the NYT sources, Microsoft is now prepared to kick in a billion dollars or so to a consortium of private investment vehicles led by Silver Lake and the Canadian Pension Plan Investment Board.

In return, Microsoft would get to keep its deal with Yahoo! to use Bing. Traffic from Yahoo! is key to Bing being viable. Based on a recent survey of the US search market each also-ran site controls about 15 per cent apiece, compared to 65.6 per cent by Google. The possibility of a Skype hookup is also mentioned.

“Microsoft does not comment on rumors and speculation,” Microsoft told The Register. Yahoo! also told us "We don't comment on rumor or speculation." Make of that what you will.

The stock market reacted to the news by pushing up Yahoo!'s share price slightly higher. ®

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Broadband slow and expensive? Blame Telstra says CloudFlare
Won't peer, will gouge for Internet transit
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
prev story

Whitepapers

A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.