Microsoft searching for new Yahoo deal

 

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By Reuters

Posted on 30 Nov 2008 at 14:51

Microsoft is in talks with Yahoo to buy the US internet company's online search business for US$20 billion (£13bn), according to a report in the Sunday Times.

The proposal under discussion involves a complex transaction that would see software giant Microsoft support a new management team to take control of Yahoo.

However, Microsoft has no intention of refreshing its earlier bid to take control of the whole company, the Sunday Times reports.

Microsoft withdrew its US$47.5bn buyout offer for Yahoo in its entirety in May after Yahoo chief executive Jerry Yang and his board rejected Microsoft's bid as too low.

Nevertheless, bid speculation was sparked again earlier this month when Yang announced he was stepping down.

Microsoft CEO Steve Ballmer ruled out a bid at the time, but said he was "open" to talks on a deal for Yahoo's search business.