Microsoft signs Yahoo's non-disclosure, stokes acquisition fire

Microsoft signs Yahoo's non-disclosure, stokes acquisition fire

Summary: Microhoo 2: Microsoft signs a non-disclosure agreement with Yahoo which could see the Redmond giant making steps toward acquiring the Internet portal giant.


Microsoft has signed a non-disclosure agreement with Yahoo, according to a source briefed on the matter, which could pave the way for the Redmond giant in buying the dwindling Internet search portal, reveals the New York Times.

In doing so, Microsoft will be allowed to inspect Yahoo's books at a closer level as it joins other private equity firms in the exclusive party.

Though Microsoft would not be a far off bet to bail out the struggling company, Microsoft recently reportedly held talks with potential partners to mount a bid for the company. Such a 'care-package' could see Microsoft investing billions into a coalition led by Silver Lake -- the same company that helped Microsoft buy Skype -- along with bank financing backing with an additional few billion dollars on hand.

This is far from being the first time rumours have surfaced that Microsoft could buy out Yahoo, as it continues to struggle.

Microsoft has stakes in Yahoo as far as its interest goes, particularly centering around advertisement revenue of its joint Bing and Yahoo search combination. While Microsoft's Bing returns search results, Yahoo shows corresponding advertisements against those results.

It's not the only connection between the two companies, however. Going as far back as allowing then MSN Messenger into Yahoo Messenger contacts' lists, paved the way forward for greater sharing and collaboration. Considering tens of millions still use Yahoo for instant messaging and web email services, it would not be an unlikely move to see Microsoft's recent acquisition of Skype enter the fold somehow.

But whether a Microsoft-Yahoo connection could work is another question altogether. It just so happens that Larry Dignan has that covered.

Though since July, when Yahoo's shares were at one of its lowest points of just over $11 a share, it has managed to climb back in the last quarter back to $14.87 a share as of today. Shortly before its calamitous plunge, it was at highs of nearly $19 per share.


Topics: Banking, Browser, Enterprise Software, Microsoft, Social Enterprise

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  • A buyout is coming

    I predicted this already when I heard the news that MS was going to make Hadoop their "big data" play;1_109007_2182623#1_109007_2182623.
    x I'm tc
  • RE: Microsoft signs Yahoo's non-disclosure, stokes acquisition fire

    anlamad??m ama neyse
  • RE: Microsoft signs Yahoo's non-disclosure, stokes acquisition fire

    What differs here, AFAIK, is that Microsoft was much more willing to spend from it's offshore accounts for Skype (rather than incur repatriation taxation within US first), than it should be for using it's inter-US reserves for the likes of Yahoo!

    Good information available if you search "Marketwatch offshore Skype". My previous posting of links seems to get eaten every time.
  • RE: Microsoft signs Yahoo's non-disclosure, stokes acquisition fire

    Its a mixed signal. One of the Majors at Yahoo sold all of his YHOO stocks late this afternoon, so that either means that there is a solid deal or YHOO is in trouble. Yahoo needs to to inform its stock holders on where its headed, but I guess if its new name is Micrhooo it matters not. I got 250 just in case it climbs up to 30. GO MICROHOO!!!!
    • RE: Microsoft signs Yahoo's non-disclosure, stokes acquisition fire

      @markstevewalker1 <br><br>And that is how the market is 'played' sir. Good luck, Godspeed. Oh, and 'break a leg', just in case.
    • Which 'Major' would that be?

      Tim Cook
  • RE: Microsoft signs Yahoo's non-disclosure, stokes acquisition fire

    Microsoft and Yahoo. I can't clear the relationship with them.

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