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Microsoft is thinking of buying Yahoo

by on06 October 2011

It is much cheaper now
Microsoft is thinking of re-opening its bidding for the search engine outfit Yahoo.

Yahoo laughed off Microsoft's earlier challenge claiming that it was not  enough cash. Now any deal that Microsoft signs will be nearly half the amount it originally offered and Yahoo should be grateful.

Microsoft joins a host of other companies looking at Yahoo, which has a market value of about $20 billion and is readying financial pitch books for potential buyers, they said. Others include buyout shops Providence Equity Partners, Hellman & Friedman and Silver Lake Partners, as well as Chinese e-commerce giant Alibaba and Russian technology investment firm DST Global.

Microsoft may seek a partner to go after Yahoo so it might be part of a team. No decision has been made and a bid may not happen as there are internal divisions at the software company on whether it should pursue Yahoo again. Some think it would be good because it would kill off AOL and create a strong Web portal that can offer better products to audiences, advertisers and end users. Others think it is better to invest in an outfit that has more potential to earn cash.

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