Report: Microsoft might get more Yahoo for less

Yahoo shareholders are pushing for a search deal that would have Microsoft buy at least a third of Yahoo, but at a lower price than it offered in previous negotiations, according to All Things D's Kara Swisher.

As a variety of forces swirl to push Yahoo and Microsoft back into each other's arms, some Yahoo shareholders are reportedly pushing for a deal that would see Microsoft acquire Yahoo's search business along with a larger stake, while paying less for Microsoft's shares than was previously offered.

According to a report by All Things D's Kara Swisher, some Yahoo shareholders have floated a proposal that Microsoft acquire a third or more of the company at somewhere between $30 and $32 a share.

As part of the search deal that Yahoo rejected , Microsoft offered to pay $35 a share, but was only offering to buy 16 percent of the company. Yahoo then inked a deal with Google , although that deal is non-exclusive and the parties said they were delaying implementation of the deal for 3 1/2 months to allow for antitrust issues.

News.com first reported on Monday that Yahoo-Microsoft talks were back on and on Wednesday reported that Microsoft CEO Steve Ballmer was weighing the issue . Swisher says her sources say that Microsoft is drawing up a new search proposal, but that formal talks have not taken place.

When Microsoft was looking to buy all of Yahoo, it initially offered $31 a share back in February and later hiked its bid to $33 a share.

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About the author

    During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft. E-mail Ina.

     

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