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Yahoo Shares Soar Following Microsoft Buyout Rumors

05 Oct

Yahoo stock prices jumped 10% last week amid rumors of Microsoft attempting another potential buyout of the internet company. There is information among news sources that Microsoft is not going to be pursuing Yahoo, however this information is conflicted with other rumors saying that there is not an agreement within Microsoft on whether or not to make another bid. Microsoft has in face made bid offers to Yahoo in the past, but if they will be trying again there will be some competition as there is a large pool of other interested buyers.

By: Reuters

Yahoo shares jumped 10 percent Wednesday amid buzz that Microsoft was considering a bid for the struggling Internet search giant.

Microsoft may seek a partner to go after Yahoo, said a source close to the situation, without identifying any parties.

This, of course, would be Microsoft’s second attempt for Yahoo after a bitter and unsuccessful fight to take over the Internet company in 2008.

But Kara Swisher, co-executive editor of the All Things Digital web site, said it’s not going to happen.

“How can I put this delicately myself? No,” Swisher wrote about a possible Microsoft bid. “According to my sources, throughout this entire process, Microsoft execs have taken pains to make it clear that they are not going to  be among the bidders in any significant manner,” she said.

No decision has been made and a bid might not materialize as there are internal divisions at the software company on whether it should pursue Yahoo again, a high-ranking Microsoft executive told Reuters.

Microsoft is the latest in a string of other companies rumored to be interested in Yahoo, which has a market value of about $18 billion and is readying financial pitch books for potential buyers, the sources said.

Those companies include buyout shops Providence Equity Partners, Hellman & Friedman and Silver Lake Partners, as well as Chinese e-commerce giant Alibaba and Russian technology investment firm DST Global, the sources said.

Microsoft and the other potential buyers declined to comment. Yahoo was unavailable for comment.

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