Skip navigation
Watchlist Sponsored By :


Current DateTime: 09:42:05 27 Nov 2009
LinksList Documentid: 24355697
  • Runway Angels

      The superbowl of fashion shows, models walk down the runway at the 2009 Victoria's Secret Show.

  • Smartphone Guide

      Here's a need-to-know guide to nine devices, based on features, price, network and platform.

  • Wines for the Holidays

      Not quite sure what wine to pair with Turkey or Creme Brulee? Our experts do.

FEATURED QUIZZES


Current DateTime: 09:42:05 27 Nov 2009
LinksList Documentid: 33793611
  • How Well Do You Know Your Bird?

      Let's talk turkey. Test your turkey knowledge and perhaps pick up a bit of trivia to trot out at your holiday meal.

  • A Healthier & Wealthier You

      Take the following quiz and find out how much you know about the impact of obesity on the health of the U.S. economy.

  • The Billionaire BFF's

      Philanthropists. Bridge partners. Hockey players. Which responses are based on facts from Buffett's and Gates' real lives?


Current DateTime: 09:42:05 27 Nov 2009
LinksList Documentid: 24890560
  • Winterizing Your Portfolio

      If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.

  • Investor's Guide to Real Estate

      Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.

  • Alternative Investing

      Stocks and bonds? Sure. But it's a big world out there for investors.

powered by digg
Microsoft, Yahoo Merger Talks No Longer Active, Says WSJ
By: CNBC.com | 04 May 2007 | 04:39 PM ET
Text Size

Yahoo
Paul Sakuma / AP
Yahoo!'s headquarters in California.

Merger talks between Microsoft and Yahoo have reportedly broken down and are more likely lead to a cooperative effort of sorts, according to recent media reports.

The New York Post reported early on Friday that Microsoft had stepped up its efforts to buy Yahoo in an effort to fend off a common competitor, Web search leader Google [GOOG  Loading...      ()   ]. The Post said that Microsoft made the bid a few months ago; though Yahoo reportedly spurned the advances, the paper said discussions were continuing.

Since then, the Wall Street Journal reported that merger discussions were no longer active, but said the companies may still explore other ways of cooperating.

Meanwhile, the New York Times said the two companies are in talks about a joint venture or some other form of cooperation. The discussions, still in preliminary stages, are part of an ongoing dialogue that the two companies have been holding for more than a year, the Times said, citing people briefed on the talks.

Yahoo shares [YHOO  Loading...      ()   ] jumped on the merger speculation, while Microsoft's stock [MSFT  Loading...      ()   ] fell, but has since recovered from earlier lows.

The two companies have held informal talks over the years, but the latest approach comes as Microsoft seeks a deal to counter Google's rapid growth.

"It's been talked about for a long time, ever since Google came into the picture. I can't imagine a more perfect deal," said Peter Lobravico, vice president of risk arbitrage sales/trading at brokerage Wall Street Access. "You can't find a stronger buyer than Microsoft and while it would spur a lot of political and regulatory noise, everyone knows in the end that the deal would go through."

Analysts often dismiss a takeover of Yahoo by Microsoft since the two companies have such different cultures and Microsoft usually prefers to buy small companies with interesting technology.

Microsoft and Yahoo declined to comment on the reports.

Investment bank Goldman Sachs advised on the process, the Post said. The bank declined to comment. One banking source said that investment banks had been pitching Microsoft on the idea of buying Yahoo for months.

The renewed talks are a sign of Google's power, the Wall Street Journal said, and are also an indicator of problems with in-house efforts at Yahoo and Microsoft. A deal could help Microsoft attract advertisers to its online businesses.

"We've been a significant believer in a Yahoo-Microsoft combination (because) both Yahoo and Microsoft both need to create a bigger presence (in advertising) to compete with Google," said Marianne Wolk, an analyst with Susquehanna Financial Group.

Google agreed to buy DoubleClick last month for $3.1 billion, accelerating a push into the graphic ad market. Google beat out Microsoft and Yahoo to win the deal, sources said.

Copyright 2009 Reuters. Click for restrictions.
Tools:
Print EmailAdd This share icon
  • digg share

CNBC HIGHLIGHTS

  • Bill Griffeth is taking a leave of absence from CNBC and Power Lunch for a year. Here's a message from Bill.
  • Zhu Zhu Pets are this year's must-have toy, fetching $40 or more on eBay.
  • T shirt man
  • From the why-didn’t-I-think-of-that file, we present Jason Sadler, a man whose job is wearing T-shirts.
  • It may be the most unusual guide to business you'll read.
  • "The Who" will be the halftime act for Super Bowl XLIV on Feb. 7 in Miami. Is the NFL behind the times?
  • Some of the nation's top bartenders offer suggestions on what to serve at holiday celebrations this year.
ADD COMMENTS
Remaining characters


Current DateTime: 06:14:06 27 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 09:11:30 27 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 08:46:05 27 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 07:56:29 27 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters