Full acquisition of Yahoo by Microsoft at $34 getting likely

Microsoft is poised to offer the extra dollar a share that could provide the breakthrough for the software giant to finally land Yahoo, according to Silicon Valley sources this weekend. Earlier this month, Microsoft ran out of patience and withdrew a $33 per share bid, valuing the beleaguered global internet search engine at $45bn.

Microsoft has been mulling over a "halfway-house" move to buy Yahoo's search-advertising business, which analysts value at between $11bn and $21bn.

But former Merrill Lynch senior analyst and Silicon Valley insider Henry Blodget claims Yahoo is prepared to do a full-company deal if the price is right – especially as its board becomes more anxious about negative shareholder reaction.

"Full acquisition at $34 is getting more likely all the time," he said.

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I think that the News Corp / Microsoft purchase would have been much better because then they could have had MySpace etc on their side as well. MSN, Windows Live, MySpace and Yahoo = Okay

(ricknl said @ #2.1)
I am sorry to disappoint you, but Yahoo is big in America not in Europe. For that matter EU wouldn't care any less.

Yahoo is big in America? I must of missed something... no where near as popular as it was in the 90's..

Oh not to worry, they are. Somehow they are still starved for cash so the guns are always aimed at the "evil" American companies who actually EARNED their dollars.

But hey why earn money the traditional way when you can just sue and hide behind some story about "proteting" the consumer EU's own pockets?