Microsoft rounds up gang to buy Yahoo

 

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By Barry Collins

Posted on 2 Jul 2008 at 08:57

Microsoft is talking to a number of high-profile media companies in a bid to strike a new deal for Yahoo that would see the internet company broken up.

Microsoft has held talks with News Corporation, AOL and Time Warner, among others, to discuss potential partnerships in the aftermath of a Yahoo buyout, according to the Wall Street Journal.

The Journal is owned by Rupert Murdoch's News Corp, giving the rumours added weight.

It's believed that Microsoft may try and split Yahoo into different parts, with Microsoft acquiring the search business, and News Corp's MySpace and AOL taking on the remains of the company, for example.

Yahoo has so far steadfastly refused to bow to Microsoft, even in the face of intense pressure from shareholders such as billionaire Carl Icahn, who is leading a boardroom coup.

The chances of Yahoo's embattled CEO, Jerry Yang, agreeing to a deal that would see the company carved up seem even more remote, although the company's faltering share price and the prospect of him being removed from the board anyway could force his hand.