Yahoo is willing to partner Microsoft, says Yang

29 May 2008

Microsoft has abandoned plans to acquire Yahoo!, but the internet search major would still love to work with the software giant, if Jerry Yang, chairman and chief executive of Yahoo, is to be believed.

Yang said Microsoft Corporation is still discussing potential partnerships with his company after walking away from a $47.5 billion takeover bid this month. Microsoft bid $33 a dare for Yahoo, up from its previous offer of $31 a share, but Yahoo demanded $37 a share and rejected the offer as still too low.

"They are discussing various other ideas and partnerships with us and we're listening," Yang said at the 'D: All Things Digital' conference in Carlsbad, California. "They clearly have some interest in Yahoo in some shape or form,'' he said.

Microsoft, he said, was no longer interested in buying Yahoo, but is discussing various other partnerships.

"We definitely have to understand what they are proposing. They clearly have an interest in Yahoo and we need to understand more," Yang said.

Microsoft, which trails Google Incorporated in the $41-billion market for online advertisements, sought to acquire Yahoo to bolster its web prospects. Microsoft trails Google and Yahoo, ranking third in the internet search market. But it abandoned its bid on 3 May after Yahoo demanded a higher price.