Microsoft pursues options with Yahoo!

Microsoft pursues options with Yahoo!

Microsoft has approached Yahoo! with an alternative that would involve a transaction but not an outright acquisition

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 its shareholders or other third parties.

Microsoft points out that a transaction may or may not result from these discussions.

Meanwhile, Silicon Valley is awash with rumours that Microsoft plans to buy Yahoo!'s search business and then buy up Facebook, merging them to create a formidable oponent for Google.

For Microsoft, the benefits of such a deal are obvious, but what's in it for Yahoo!?

Meanwhile, the New York Times reported that Microsoft and Yahoo may form a partnership or joint venture for search-related advertising, whereby Microsoft would sell display ads next to Yahoo! search results. This would effectively diminish Google's dominance in the search market.

Yahoo! is reportedly considering a number of strategic alternatives.

The suggestion is out there that the reason Microsoft withdrew it's bid was to reduce Yahoo!'s value, and it's quite possible that Microsoft may make another bid to acquire the entire company.

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