Microsoft In Bids To Buy Yahoo

May 4, 2007 – 12:41 pm

The search industry is highly competitive and the next big move out of Microsoft could be to just go buy out Yahoo.

The New York Post reported Friday that Microsoft has asked Yahoo to enter formal negotiations for an acquisition that could be worth $50 billion. Yahoo’s market capitalization was about $38 billion on Thursday.

Microsoft, based in Redmond, Wash., had no immediate comment on the report, spokesman Lou Gellos said Friday.

The Wall Street Journal said executives of the two companies are looking at a merger or some other kind of matchup and said the talks appear to be early-stage discussions. It said the companies explored the idea of combining last year but the talks led nowhere.

Do you think this strategic acquisition will help pit them (Yahoo and Microsoft) against Google?

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