Google and Microsoft seen together in public

By Alun Williams

Posted on 31 Oct 2003 at 10:41

Microsoft has been making overtures to Google within the last two months, exploring possibilities for partnership or takeover, according to the US press.

Google is said to be preparing to launch itself as a public company. Executives met with investment bankers last week to discuss how to take the company public as early as March next year.

The IPO would be a much anticipated IT event, and it would be expected for Microsoft to keep a very close eye on developments, with its interest in the search business.

According to the report on the New York Times, Google executives have said that Microsoft approached the company within the last two months. Discussions covered the possibility of a Microsoft takeover, as well as possibilities for partnership, but IPO has remained the prefered route - opening its shares on a public basis, rather than being swallowed by Microsoft.

Once Google goes public, however, controlling interests can be bought or sold. It may be at this point that Microsoft would make a more decisive move.

Both Google and Microsoft, however, refused to comment to the New York Times on the story.