Is Microsoft Eyeing Yahoo?

Microsoft Corp. is resuming its pursuit of search engine operator Yahoo Inc. that could help it better compete with Web search leader Google Inc., published reports said Friday.

Yahoo shares surged more than 17 percent in premarket trading.

The New York Post reported Friday that Microsoft has asked Yahoo to enter formal negotiations for an acquisition that could be worth $50 billion. Yahoo's market capitalization was about $38 billion on Thursday.

The Wall Street Journal said executives of the two companies are looking at a merger or some other kind of matchup and said the talks appear to be early-stage discussions. It said the companies explored the idea of combining last year but the talks led nowhere.

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Larry Magid discusses the possible partnership with Tim Bajarin, one of Silicon Valley's leading tech analysts.

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"They're getting tired of being left at the altar," one source who has recently had talks with Microsoft told the Post. "They now seem more willing to extend themselves via a transaction to get into the game."

Microsoft is feeling increasing pressure to compete with Google, which plans to beef up its portfolio with a $3.1 billion purchase of online advertising company DoubleClick Inc.

Microsoft currently trails both Yahoo and Google in the lucrative and growing business of Web search.

Google won a search advertising deal with AOL in 2005 that the Post said Microsoft wanted. In addition, Google is developing Web-based software that directly competes with Microsoft Office.

The Post story said Microsoft and Yahoo have held informal talks over the years and said Microsoft's latest approach to Yahoo signals increased urgency.

Earlier this week, Yahoo said it would buy 80 percent of advertising exchange Right Media for $680 million, increasing its stake in that company to full control.

Yahoo shares surged $5, or 17.7 percent, to $33.18 in premarket trading, while shares of Microsoft fell 28 cents to $30.69.

[l8c6]

Microsoft will make yahoo pretty and convoluted with lots of graphics. They will up compete with gmail and it will take twice as long to log on and load the pages. It will appear to off alot and in reality offer little more and what extra is offered will be like deep sea diving to access with lots of dangerous hitches and initially exciting graphics along the way. If one doesn't use the service after one month, all data in the account will be dumped. It's america afterall and "there ain't no free lunch".

So pick yourself up by your bootstraps and head for gmail cause Microsoft destroyed hotmail a few years ago and it's unlikely they'll do better with Yahoo. There are too many big sharks in their company hovering in their waters and most of the creative innovators have been eaten up.

[rikedoid]

Oh boy - just what we need, less "competition" and choice - it's not only Yahoo we're talking about if they're bought out - they themselves own a number of others.
We don't need any more Microsoft monopolies.

[michellem99-2009]

I truly love Google. They are better. I feel that MSN search is very poor. Yahoo is better than MSN. I think the boys and girls at Microsoft want to be like Ma Bell. I am 52. I use the term boys and girls they are younger than I. I hope I don't have to use Vista as it is so poorly done.So what happens to yahoo if MS gets its paws on it. Mess it up.

[glidescube]

What I like about Google is that when you go there for a simple search they are not trying to sell you tons of ***...it's a very basic interface. Yahoo on the other hand looks like a *** flee market.

[michellem99-2009]

I have msn as isp. I have 2 browsers. That helps when looking stuff up. I have msn google yahoo. Browser Microsoft and Internet Explorers.As engines google yahoo msn. I hate outlook express. I use msn for e mail. I had to battle with them to sit it up for my needs. It IS one thing to have sight to read small print. I got the print large. I have windows xp. I am just a home user. I like google best as an engine. Msn more likely mess up the format of yahoo. Lets hope they don't get yahoo.Paws off.

[fascistusa]

We are The Microsoft.

You will be ASSIMULATED.

RESISTANCE IS FUTILE.

[nowhereman00]

Would be good to see Microsoft get back in the game here (can't believe I'm saying that). Will the deal happen, though?...

http://www.buzzdash.com/?page=buzzbite&BB_id=15539

[Fred Lane]

Right On....Death to Google!

[l8c6]

Glad I signed up for Gmail. Years ago when MS bought up hotmail they made a mess of it. It'll be time to dump any yahoo accounts as the service will fill with spam, there will be more fees and stipulations, the site will become choked with graphics. It will be so geared toward the Windows environment Mac users will have to look elsewhere, not accessing ones account less than a months time will mean a suspended e-mail account with all e-mails, pictures, calendar data lost. Microsoft is on the caliber of AOL. Some people like them but I have through the years found both enterprises to be controlling and convoluted and in the end the customer loses.