Saturday, May 5, 2007

Microsoft to Buy Out Yahoo

Microsoft the IT giant is keen to acquire a majority stake in Yahoo Inc. The company is asking to re-enter formal talks with Yahoo after it had turned down the offer valued at $50 billion. According to media reports, Microsoft has renewed talks with Yahoo.

While the two companies have held informal deal talks over the years, the latest approach signals a new urgency on Microsoft's part, the paper said, citing unnamed sources.

Microsoft



One of the main reasons of desire for acquisition is to take over Google which is dominating the online search and web advertising so far. A deal between Microsoft and Yahoo will give the company an edge over online rival Google. This would also hike the companies' share in the search advertising market to 27 per cent against Google's 65 per cent.

It is estimated that Yahoo shares jumped 4.4 per cent on the rumors of a possible acquisition. However, Microsoft and Yahoo have declined to comment on any speculation.
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