Microsoft is considering buying Yahoo
The computing giant is eyeing up the Web company, according to a report, and might not be going it alone…
Microsoft might buy Yahoo, a source has revealed to Reuters -- and it might not go it alone either. According to the source, Microsoft may be looking for a partner in bidding for the $18 billion (£11.6 billion) company. We can sense a Yahoo pile-on brewing, with every participant screaming the company name as they leap.
And from the sounds of things, Yahoo is ready and prepared. It's currently readying financial pitch books for potential buyers including Providence Equity Partners, Hellman & Friedman, and a few other hardcore companies we've also never heard of.
Reuters credits the leak to a "high-ranking Microsoft executive," and says a bid may not materialise due to internal divisions within the company. Microsoft tried unsuccessfully to take over Yahoo back in 2008.
One part of Microsoft is in favour of the deal, believing it'd blow AOL out of the water, or, to put it in more official terms, would "create a strong web portal that can offer better products to audiences, advertisers and end users," according to the exec. Those against it think Yahoo doesn't have enough potential for growth.
"Yahoo's value hasn't grown in years, and some executives feel we should buy something that is more forward-looking," the anonymous executive was quoted as saying.
Yahoo gave CEO Carol Bartz the elbow last month, then said it was exploring strategic alternatives after seeing interest from a number of parties.
Microsoft has teamed up with Nokia in the last year to focus on its Windows Phone software. Apps from that OS could also work on Windows 8, its next generation of desktop software.
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