Google offers support to Yahoo to thwart Microsoft bid

04 February 2008

Mumbai: Yahoo Inc may consider an alliance with internet rival Google Inc to fend off the $44.6 billion takeover proposal by software giant Microsoft Corporation, reports quoting sources close to the developments said.

Yahoo is considering a revival of talks with Google on an alliance as an alternative to Microsoft's $44.6 billion merger offer, reports said.

Reports also said several media, technology, telephone and financial companies are in contact with Yahoo, although they did not point to any alternative bid.

Yahoo executives said no decision has been made so far on consolidation proposals. "We want to emphasise that absolutely no decisions have been made - and, despite what some people have tried to suggest, there's certainly no integration process underway," Yahoo said in a memo to employees.

Analysts, however, say Google is an unlikely winner in a bidding war as it would have difficulties in getting approval from anti-trust regulators.

Google only would like to see the Microsoft alliance plan thwarted. In fact, Google chief executive Eric Schmidt is said to have called Yahoo's chief Jerry Yang to offer help.