If either one of the tech giants, Google (NASDAQ:GOOG) or Microsoft, are able to get their financial & legal ducks in line a Yahoo acquisition would be historic in the Internet search business. Consumers drive major financial profits when using search and it’s aligned with PPC (pay per click) ads. With Yahoo’s share of consumer searches this can mean big money.
Multiple sources are now talking about Google having talks with two private-equity firms. The discussions with the venture capital investment firms is the potential of Google financially backing an acquistion of Yahoo Inc. (NASDAQ:YHOO) and all of it’s properties. Google has expressed interest in selling advertising on multiple Yahoo properties.
The Wall Street Journal mentions that formal proposals have not been drawn up and that talks could fall apart keeping any bid from happening. The interest has been speculated for awhile as Microsoft (NASDAQ:MSFT) and their search engine, Bing, holds a 10 year partnership with Yahoo to provide all of their search results.
This drags Microsft in the mix as there are reports of Microsoft talking with venture capital investors as well to help buy Yahoo and all their properties. Just recently on Wednesday of October 19th, 2011 Steve Ballmer, Microsoft CEO, stated in responseto whether Microsoft was glad it didn’t acquire Yahoo, “You know, times change,” Ballmer said. “You ask any CEO who might have bought something before the market crashed in 2008, ‘Would you be glad that you didn’t buy something’? Hallelujah! Everythi
ng else aside, the market really kind of fell apart. If you think about the timing, if Yahoo had accepted our bid…we would have closed post Lehman Brothers. So, yeah, sometimes you’re lucky.”
A report from Reuters that is an exclusive, covers the story on Microsoft considering placing a bid on Yahoo. Yahoo’s publicly traded shares have seen big increases with all these talks jumping as much as 10.1 percent in one day to $15.92. The value of a Yahoo acquisition whether it’s by Google or Microsoft would be valued at $20 billion dollars.
- Ballmer reveals Microsoft was “lucky” not to buy Yahoo (winrumors.com)
- Could Google be trying to bluff Microsoft into a bid for Yahoo? (winextra.com)
- Google Mulls Buying Yahoo [REPORT] (mashable.com)