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
BBC: We're going to slip CODING into kids' TV
Pureed-carrot-in-ice cream C++ surprise
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Twitter: La la la, we have not heard of any NUDE JLaw, Upton SELFIES
If there are any on our site it is not our fault as we are not a PUBLISHER
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

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.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
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.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?