Microsoft is considering bidding for a partnership with Yahoo, according to reports.
A fresh attempt by Microsoft for Yahoo and its various web properties is on the cards according to the Reuters news agency. Microsoft is reportedly seeking to partner with Yahoo but it’s not clear whether the software company will opt for a bid considering the unsuccessful plan to acquire Yahoo in 2008. The software giant offered $44.6 billion cash-and-stock to purchase Yahoo in February, 2008. The deal was an intense one for both parties, valuing Yahoo’s stock price at $31, a significant premium on its true value at the time. Despite the offer, Yahoo declined and wanted more cash. Microsoft upped its offer to $33 a share but Yahoo believed the company was worth $37 per share. Yahoo’s board of directors eventually went public with a reply to Microsoft’s offers, stating “we have continued to make clear that we are not opposed to a transaction with Microsoft if it is in the best interests of our stockholders. Our position is simply that any transaction must be at a value that fully reflects the value of Yahoo!, including any strategic benefits to Microsoft, and on terms that provide certainty to our stockholders.”
The failed deal surfaced as a search deal between Bing and Yahoo. Microsoft secured a 10-year deal in July 2009 to push Bing as the exclusive algorithmic search and paid search platform for Yahoo! sites. The agreement ended Microsoft’s talks with Yahoo which had lasted nearly two years. Yahoo has failed to make an impact with its various web properties, despite acquiring popular photo sharing site Flickr. The once popular web portal and search engine has struggled against Google and Facebook in the new world of social networking. A Yahoo sale in 2011 could open the doors to a number of new options for the company.
Yahoo’s board fired CEO Carol Bartz in early September over the phone after nearly three years in charge of the struggling internet services company. A fresh Microsoft bid would see the company face off against a range of other companies according to Reuters. Yahoo’s market value is around $18 billion and companies like Providence Equity Partners, Hellman & Friedman and Silver Lake Partners, as well as Chinese e-commerce giant Alibaba and Russian technology investment firm DST Global, are reportedly considering bidding for Yahoo.
Microsoft declined to comment on Reuters report.
Thanks to WinRumors reader Nick for the news tip