Rumor: Microsoft looking into purchasing Yahoo

Yahoo has been under the microscope in the past couple of weeks following the web site's dismissal of its CEO Carol Bartz. Now Business Insider claims via an unnamed source that Microsoft is at least considering a takeover offer of the company. The article quotes the unnamed source as saying, "Yahoo is a lot more interesting. If it comes into play, then at least their U.S. media business is a pretty interesting asset." Microsoft tried to purchase Yahoo a few years ago but the two companies were unable to reach an agreement.

Bloomberg reports that Yahoo's board of directors is considering several bids from companies for a possible sale of some or all of its divisions. One of those companies is the private equity firm Silver Lake, according to the report. Silver Lake's bid would have the company buy out Yahoo. Then it would sell off its Asian investments and either attempt to revamp the rest of the company or sell it off to another party.

Yahoo's board of directors met earlier this week to discuss its options with the investment bank Allen and Company. It also discussed searching for a new CEO. Carol Bartz was fired last week over the phone by Yahoo's board and later said in an interview that the company's board "f***** me over." Last week there were rumors of a possible merger between Yahoo and one of its main rivals AOL but other media reports denied that Yahoo was interested in such a merger offer. A Yahoo stockholder, Third Point LLC, has called for Yahoo's board to resign. It claims new board members would offer "fresh eyes, relevant industry expertise and increased investor alignment to the table."

Yahoo still has one of the biggest and most visited web sites on the Internet. Bloomberg's story says that according to ComScore, Yahoo's site had 674 million unique visitors in July.

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I think they should go for it...esply if it's available ~$15B-20B.....However MS would have to invest additional Billions in designing new UI's and Rebranding.....but it's worth it.....

Yahoo+Bing is alreading growing....so MS will get better Revenue....also Yahoo Mail users can be allowed to use same UI or migerate to Hotmail....while company can use it's data center's for all services......yahoo media, finance can replace MSN.....messange can be integrated to Windows Live....and of course Flickr is good....can be extended as competition to web picasa as well....this partnership is also good for Bing Maps....which will have MS and Nokia techs, with use base of yahoo and ms....

Also if a company like Facebook or AOL buys it.....it can be a threat to Bing....esply FB...

You're kidding yourself if you don't think a company like Microsoft has an entire team that just looks at possible takeovers, Yahoo included, on a 24/7 basis.

Copernic said,
Great, maybe after purchase MS will finally kill the old, bloated, full with bugs Yahoo Messenger.

Haven't really used Yahoo Messenger but I have a very hard time imagining it being more "bloated" than Live Messenger
I personally think the whole "bloated" argument usually is stupid but if any app is bloated Live Messenger is...

It seems pretty pointless as they can do pretty much anything Yahoo does and probably better. They would end up killing most of Yahoo along with their back end infrastructure as it's not MS.

The only thing going for them is Yahoo have a healthly media presence online that is actually profitable unlike MSN and their user base is very large.

I don't know how long time Yahoo users would feel if MS started migrating them to their services.

oceanmotion said,
It seems pretty pointless as they can do pretty much anything Yahoo does and probably better. They would end up killing most of Yahoo along with their back end infrastructure as it's not MS.

The only thing going for them is Yahoo have a healthly media presence online that is actually profitable unlike MSN and their user base is very large.

I don't know how long time Yahoo users would feel if MS started migrating them to their services.

In my opinion Yahoo is stucked sometime in the past. It has no innovations since 2k. You can see this in it's webmail. It's useless, full of bugs, I'm using hotmail and gmail for a long time, because yahoo webmail is frustrating. Think about Yahoo services merged in Windows Live services as our fried said above. The only thing I have to agree is that the name "Yahoo" should not disappear since it's very strong in the media.

Eberton Sobreira said,

In my opinion Yahoo is stucked sometime in the past. It has no innovations since 2k. You can see this in it's webmail. It's useless, full of bugs, I'm using hotmail and gmail for a long time, because yahoo webmail is frustrating. Think about Yahoo services merged in Windows Live services as our fried said above. The only thing I have to agree is that the name "Yahoo" should not disappear since it's very strong in the media.


Agreed. I'm using Yahoo Groups for a project, and it feels like I took a jump back to 2001 on the web. I really wonder what they have been doing behind the scenes for 10 years. Yahoo Answers is the only unique service that I can think of that Yahoo seems to do better than others.

Eberton Sobreira said,

In my opinion Yahoo is stucked sometime in the past. It has no innovations since 2k. You can see this in it's webmail. It's useless, full of bugs, I'm using hotmail and gmail for a long time, because yahoo webmail is frustrating. Think about Yahoo services merged in Windows Live services as our fried said above. The only thing I have to agree is that the name "Yahoo" should not disappear since it's very strong in the media.


When did you last use Yahoo Webmail? And are you sure it was the latest version, I know my old account still use a three versions old webinterface?
Hotmail are years behind Yahoo when it comes to Webmail. IMO yahoos webmail is even better than Gmail (which I never really like to be honest), none compare to using a good local client like the one in iOS though but still...

Mail is one of the few services they have that they are actually actively developing.
I guess Flickr could also be a reason to acquire Yahoo, not that it's actually a profitable service but it's very popular and used by many.

I think it would be a good call for Microsoft tbh. They would get Yahoo dirt cheap ( a lot less than the $44.6 billion they offered in 2008) and would gain lots of users they could migrate to Windows Live.

Possible. It would be good for Bing and they are much cheaper than they were before.

But here is one of a 'but'.
Windows 8, Windows Phone 8 and Xbox have Bing integration. This guarantees Bing's success.

FMH said,
Possible. It would be good for Bing and they are much cheaper than they were before.

But here is one of a 'but'.
Windows 8, Windows Phone 8 and Xbox have Bing integration. This guarantees Bing's success.

Yahoo already uses Bing for their search though

Sraf said,

Yahoo already uses Bing for their search though

Yeh and MS only gets a 5% cut from the revenue generated from those searches, this way it would get a 100%

FMH said,
Possible. It would be good for Bing and they are much cheaper than they were before.

But here is one of a 'but'.
Windows 8, Windows Phone 8 and Xbox have Bing integration. This guarantees Bing's success.

& that's why I'd think it'd be great if, as I posted above, they put what Yahoo has but Bing doesn't into Bing.

Adamb10 said,
What could Microsoft possibly want with Yahoo?

I still don't see the point. Why would ANYONE ever want to purchase Yahoo! ?

Adamb10 said,
What could Microsoft possibly want with Yahoo?

Mail, Messenger, and Flickr could be merged into Windows Live services

Viper550 said,

Mail, Messenger, and Flickr could be merged into Windows Live services


Well, I was thinking combining the efforts of Bing & Yahoo! Search into 1 big search engine so it could compete better with Google...

Viper550 said,

Mail, Messenger, and Flickr could be merged into Windows Live services


Indeed, possible merged services. Or just the amount of user.
MS could also borrow the Yahoo Mail Webinterface and put it on Hotmail (after rebranding of course) would help them a lot, Yahoo has the best interface (IMO) and Hotmail has one of the worst

Jarrichvdv said,

I still don't see the point. Why would ANYONE ever want to purchase Yahoo! ?

Do you have any idea how many services Yahoo has and how many people use them?

Leonick said,

MS could also borrow the Yahoo Mail Webinterface and put it on Hotmail (after rebranding of course) would help them a lot, Yahoo has the best interface (IMO) and Hotmail has one of the worst

Yuck. Yahoo Mail is ancient. I was thinking of overhauling Yahoo Mail by giving it all the goodies from Hotmail.

Leonick said,

Indeed, possible merged services. Or just the amount of user.
MS could also borrow the Yahoo Mail Webinterface and put it on Hotmail (after rebranding of course) would help them a lot, Yahoo has the best interface (IMO) and Hotmail has one of the worst

Please no!

As a Yahoo Mail user, I don't agree with this. Everytime Yahoo changed the mail UI, some important features get lost in the process -- the most important one is Photo Attachments.

TRC said,

Do you have any idea how many services Yahoo has and how many people use them?

I actually don't know a single person who uses Yahoo for anything except the mailing lists/groups.

excalpius said,

I actually don't know a single person who uses Yahoo for anything except the mailing lists/groups.

Interesting logic. I don't know anyone who speaks French, therefore no one does.

thenonhacker said,

Please no!

As a Yahoo Mail user, I don't agree with this. Everytime Yahoo changed the mail UI, some important features get lost in the process -- the most important one is Photo Attachments.

I hear that! May not agree that photo attachment is the most important, but they do screw stuff up every time they do something to it.

If MS can buy Yahoo for around..say 14Billions, then yes, by all mean do it MS. That is really cheap. But anything over 18b is a fall stretch.