Microsoft Interested Anew In Yahoo

November 25th, 2011 at 3:26 pm

It seems that there is still something that Microsoft finds interesting in Yahoo. That interest is still more than enough to keep the software giant to pursue any means to acquire Yahoo. It has already been spurred before by Yahoo. But now that a lot has changed over the years, Microsoft has renewed its effort to once again court Yahoo into a mutual partnership of some sort.

Well just how serious is Microsoft in trying to acquire Yahoo? According to the New York Times, Microsoft has agreed to sign a non-disclosure agreement with Yahoo for the opportunity to study and analyze Yahoo’s books and financial status. Microsoft will not be divulging anything to anybody who may also be interested in buying Yahoo.

Yahoo may have rejected Microsoft’s previous $44.6 billion offer during the first round of acquisition talks. Yahoo thought then that it was worth more than that. But not this time around. Since the failed bid made by Microsoft, Yahoo has gone through a downward spiral that saw its value drop considerably down. By now, the company now may not be worth Microsoft’s initial offer then. Call is a tale of missed opportunity.

But in the case of Microsoft, the failed bid did not actually close the door on having a partnership with Yahoo. In fact, after the failed acquisition bid, Microsoft was still able to develop a partnership with Yahoo in a search deal. The partnership involved Yahoo selling ads against Microsoft Bing’s search engine results.

What Microsoft is seeing here is that in order to keep this partnership deal alive, it might need to bid anew to acquire Yahoo. So far the partnership has been good for Microsoft and its Bing search engine. Acquiring Yahoo will ensure that this business setup will continue on. It is not only that. By acquiring Yahoo, Microsoft may have another weapon in order to challenge Google’s supremacy in the online search market. Microsoft has long been targeting Google’s take on online ad revenues in search deals. Acquiring Yahoo will give Microsoft a better chance at mounting up a challenge on the current online search leader, as well as getting some shares in the lucrative online advertising market.


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