Mumbai: Microsoft Corporation, which is in hot pursuit of Yahoo Inc, has
asked the latter to start formal talks for a takeover deal, a New York Post
web site report quoted sources as saying.
put the value of the deal roughly at $50 billion.
the two have held informal talks over a possible deal over the years, the latest
move signals a new urgency on Microsoft''s part, the report said.
made a move to buy Yahoo a few months ago, but Yahoo spurned the advances, the
acquisition of search engine operator Yahoo Inc could help Microsoft better compete
with web search leader Google Inc.
Wall Street Journal said officials of the two companies are looking at a merger
or some other kind of match-up and said the talks appear to be early-stage discussions.
feeling increasing pressure to compete with Google, which plans to beef up its
portfolio with a $3.1 billion purchase of online advertising company DoubleClick
currently trails both Yahoo and Google in the lucrative web search business.
had lost an AOL advertising deal to Google in 2005. In addition, Google is developing
Web-based software that directly competes with Microsoft Office.
this week, Yahoo had said it would buy 80 per cent of advertising exchange
Right Media for $680 million, increasing its stake in that company to full control.
shares surged $5, or 17.7 per cent, to $33.18 in pre-market trading, while shares
of Microsoft fell 28 cents to $30.69.