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Microsoft May Consider Buying Part of Yahoo!

Category: Other

by Anton Shilov

[ 05/19/2008 | 11:19 PM ]

Microsoft Corp. has issued a statement claiming that despite of the lack of a plan to acquire Yahoo!, the company may consider buying a share in the company to boost its online services. Both companies are fighting vigorously with Google, which has more users than Microsoft or Yahoo!, but still considerably less than Microsoft and Yahoo! combined.

“In light of developments since the withdrawal of the Microsoft proposal to acquire Yahoo!, Microsoft announced that it is continuing to explore and pursue its alternatives to improve and expand its online services and advertising business.  Microsoft is considering and has raised with Yahoo! an alternative that would involve a transaction with Yahoo! but not an acquisition of all of Yahoo!,” the world’s largest software developer said in its statement.

According to comScore, a global Internet information provider, Google web-sites attracted 141.08 million of unique visitors in the USA in April ’08, whereas Yahoo!’s and Microsoft’s portals got 140.6 and 121.2 unique visitors from the U.S., respectively. Therefore, a combination of Microsoft with Yahoo! would create an exceptionally powerful Internet company. Still, since management of Yahoo! did not accept take over proposal of the software giant and Microsoft dropped the idea, there are hardly a lot of chances for the giant Internet company to emerge.

“Microsoft is not proposing to make a new bid to acquire all of Yahoo! at this time, but reserves the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo! or discussions with shareholders of Yahoo! or Microsoft or with other third parties. There of course can be no assurance that any transaction will result from these discussions,” Microsoft added.