Microsoft signs agreement to scrutinize Yahoo

Nov 24, 2011 By MICHAEL LIEDTKE , AP Technology Writer

It looks as if Microsoft wants a seat at the negotiating table if Yahoo decides to sell part or all of its business.

To gain better access, . has signed a nondisclosure agreement with Yahoo Inc., according to a person familiar with the situation. The person spoke to The Associated Press on Wednesday on the condition of anonymity because the agreement hasn't been formally announced.

The DealReporter and The New York Times earlier reported the arrangement between Microsoft and Yahoo.

Yahoo's board has been mulling the company's options since firing CEO in early September. The alternatives include selling Yahoo's Asian assets, such as the Alibaba Group in China, and auctioning off the company in its entirety instead of hiring a new CEO. Tim Morse, Yahoo's chief financial officer, has been interim CEO since Bartz's ouster.

The DealReporter said that Yahoo's board is scheduled to meet next week to discuss its next step.

Microsoft unsuccessfully tried to buy Yahoo in 2008 for as much as $47.5 billion before walking away in frustration. Yahoo's stock is worth less than half of Microsoft's last offer of $33 per share.

Yahoo shares fell 3 cents Wednesday to close at $14.94. Microsoft's dropped 32 cents to close at $24.47.

The New York Times reported that Microsoft is primarily interested in protecting its Internet alliance with Yahoo if its partner pursues a sale or a dramatic reorganization. Microsoft currently provides most of the on Yahoo's website in return for 12 percent of the ad revenue generated from the results.

To preserve its business relationship with Yahoo, Microsoft already had explored contributing to a joint bid for Yahoo's U.S. assets with some of the buyout firms that have been considering making offers. That list includes Silver Lake Partners, Providence Equity Partners and the Texas Pacific Group.

CEO Jack Ma has publicly acknowledged that his company would like to buy , but that could be difficult because of U.S. government concerns about a Chinese business owning a U.S. company that handles email and other electronic communications.

Explore further: IBM posts lower 1Q earnings amid hardware slump

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Yahoo shares soar on new Microsoft takeover hopes

Oct 05, 2011

Yahoo Inc.'s stock price soared more than 10 percent late Wednesday on hopes that its once-spurned suitor, Microsoft, will return with another takeover bid now that the struggling Internet company is mulling ...

Microsoft finally fueling Yahoo's search engine

Aug 24, 2010

(AP) -- Microsoft Corp.'s technology is now processing all the search requests on Yahoo Inc.'s website in the U.S. and Canada, completing a long-awaited leap that creates a more formidable challenger to Google Inc. in the ...

Silver Lake, others eye Yahoo!: reports

Sep 16, 2011

Private equity firm Silver Lake Partners has approached Yahoo! about making a bid for the struggling Internet company, according to newspaper reports.

Recommended for you

IBM posts lower 1Q earnings amid hardware slump

3 hours ago

IBM's first-quarter earnings fell and revenue came in below Wall Street's expectations amid an ongoing decline in its hardware business, one that was exasperated by weaker demand in China and emerging markets.

New US-Spanish firm says targets rich mobile ad market

10 hours ago

Spanish telecoms firm Telefonica and US investment giant Blackstone launched a mobile telephone advertising venture on Wednesday, challenging internet giants such as Google and Facebook in a multi-billion-dollar ...

Technip, Heerema win third giant Angolan oil contract

13 hours ago

The ultra-deep Angolan offshore oil project called Kaombo generated the third huge contract in three days on Wednesday when French group Total picked two firms to carry out underwater engineering worth $3.5 billion.

User comments : 0

More news stories

Simplicity is key to co-operative robots

A way of making hundreds—or even thousands—of tiny robots cluster to carry out tasks without using any memory or processing power has been developed by engineers at the University of Sheffield, UK.

Microsoft CEO is driving data-culture mindset

(Phys.org) —Microsoft's future strategy: is all about leveraging data, from different sources, coming together using one cohesive Microsoft architecture. Microsoft CEO Satya Nadella on Tuesday, both in ...

IBM posts lower 1Q earnings amid hardware slump

IBM's first-quarter earnings fell and revenue came in below Wall Street's expectations amid an ongoing decline in its hardware business, one that was exasperated by weaker demand in China and emerging markets.

Down's chromosome cause genome-wide disruption

The extra copy of Chromosome 21 that causes Down's syndrome throws a spanner into the workings of all the other chromosomes as well, said a study published Wednesday that surprised its authors.