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Microsoft eyes Yahoo takeover as it looks to close down Google
Microsoft could be looking to buy Yahoo in its bid to close down Google in the internet advertising sector.
According to the New York Post, Microsoft has asked Yahoo to enter formal negotiations, following on from an unsuccessful attempt to acquire the internet firm a few months ago.
Wall Street estimates that Yahoo could be worth $50 billion and Yahoo shares jumped by 18 per cent to $33.29 on the news.
They're getting tired of being left at the altar," said one source. "They now seem more willing to extend themselves via a transaction to get into the game."
Google currently enjoys a huge lead over both Yahoo and Microsoft in its share of the US search market, holding more than 48 per cent at present. However, a deal would give Microsoft a 38.4 per cent share, according to research firm comScore, dramatically shifting the landscape in the sector.
Last month Google won a bidding war for internet ad firm DoubleClick, ahead of both Microsoft and Yahoo.
Bill Gates' company then accused Google of creating a monopoly in the search advertising market.
A source told the New York Post: "The minute you hear Microsoft start arguing against something on antitrust grounds, you know they are desperate and need to do something big."
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Microsoft News posted on 04 May 2007
