Microsoft to buy a stake in Yahoo?
A published report says that the software giant is mulling such a pact to compete against Google.
Although talks over an equity stake do not appear active, Microsoft's top management remains open to a deal with Yahoo as pressure grows from shareholders to perform better against Google, the newspaper cited people familiar with the situation as saying.
Microsoft and Yahoo have discussed possible options over the past year, the newspaper said. Microsoft could sell its MSN online network to Yahoo and take a minority stake in the Internet portal, it said.
Last year, Microsoft had been negotiating to strike a partnership with Time Warner's AOL Internet unit, but it was shut out when Google agreed to invest in a 5 percent stake in AOL. Microsoft
Microsoft's earnings outlook last week fell well short of Wall Street expectations, as the company signaled more investments for its software services business.
Analysts said Microsoft planned to spend an additional $2 billion in the coming fiscal year starting July 1, speculating that much of that investment would go toward building an ad-supported online service business.